EU Finance Ministers urged to reduce VAT on sound recordings

I just posted the article EU Finance Ministers urged to reduce VAT on sound recordings.

The European music
sector urged Member States to seize the opportunity to reduce VAT on sound
recordings, as EU Finance Ministers attended an informal meeting in Stresa,
Italy. VAT on sound…

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VAT is applied evenly to everything in England, apart from completely exempt products [eg. kids clothes, food] @ 17.5%. I’m pretty sure this is the case in France too. I want to know which countries he’s talking about! I think it’s a bit rich to blame VAT for excessive music pricing.
[edited by the111 on 16.09.2003 11:16]

We have IVA here in Italy, and is applied to everything too. Anyway also companies should reduce their cd prices, not only require a VAT reduction.
[edited by Fr4nz on 16.09.2003 12:13]

In Sweden the VAT on books are 6% but kids clothes are 25% just like most other items. There is also a difference when going to a restaurant if you bring the food with you i believe its 12.5 percent. If you eat there its 25. One can wonder why withing the EU there isn’t harmonized VAT rules.

In the Netherlands are two VAT rates, 6% on basic needs (like food, but also books) and 19% for the rest.

I reckon they shouldnt reduce the vat on the music recordings as the companies will still be making lots of money off Music, as its not eating into their money, it just taking away tax money from governements in the EU. Why dont the companies reduce the prices that they sell their products at, or are the managers too scared they wont be able to replace their Ferraris every few months. Also the reason why countries dont harmonise vats rules accross the EU, as if it was set at say 19% as it is in france this would be too much for some countries that have a low vat rate. Or if they set it too low then taxes will have to go up to pay for the lost money the governemnt makes on vat. Anyway EU wont last, its just not run that well.

Its a bit high and mighty regarding the crap that is currently coming from the music industry as culturally significant. Maybe if they actually started developing real artists rather than the sweet and low stuff they are pumping out it would be regarded in the same light as books, the theatre, concert hall admissions etc.

Oh yeah great. Reduce the VAT but NOT the actual price of the CD’s so the record companies can still ripoff consumers? Yeah right.

Are you all crazy? Of course VAT/IVA taxes should be reduced to the one applied to the standard cultural products, like books. Here in Portugal books only have 5% while Audio CDs have 19%. I don’t think this is fair. I agree that RIAA IST EVIL and the whole music industry is taking the wrong way against consumers, but this is a different issue… cya