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Netherlands tax could devastate iPod sales

updated 08:30 am EDT, Thu April 28, 2005

Netherlands iPod tax


A Netherlands proposed tax on MP3 players could , such as Apple's iPod. The tax is set to become law in the Netherlands in a few short months unless the European Commission finds a reason to intervene. "The idea of all levy based legislation is that some form of copyright collections agency collects tax by imposing a surcharge at the point of sale for any storage devices that could possibly be used to store pirated works," reports The Register. "Because of the fact that the great bulk of iPods are used to store legitimate iTunes files which are Digital Rights Management (DRM) protected, this means that copyright is being purchased twice over for these devices if a levy is also paid." If this legislation comes into play, the surcharge will be as much as €3.28 ($4.3) per gigabyte. This might put €180 ($235) to the price of a top end iPod.


by MacNN Staff

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Comments

  1. Appleman

    Mac Elite

    Joined: Feb 2001

    0

    Double Dutch?

    Almost ashamed of being Dutch.

  1. MacMoose

    Fresh-Faced Recruit

    Joined: Mar 2003

    0

    Not only Apple

    But every other hard drive based player will be affected as well. Now is this just for HD based players or will flash based ones get this huge tax as well.

    I think people will order out of the country and just have the iPods delivered potentially, unless they find a way to tax that as well. Apple, come up with a Paypal plan or something and some form of warranty shipping plan for those brave Dutch that buy a iPod with no Apple store there to return it to.

  1. f1000

    Professional Poster

    Joined: Jan 2003

    0

    Solution,

    Apple should make its iTunes songs freely available in the Netherlands and then request that the government compensate it for the number of songs sold.

    This could actually work in Apple's favor, since pirated songs wouldn't be free anymore.

  1. f1000

    Professional Poster

    Joined: Jan 2003

    0

    In any case,

    Apple's not making much money off the iTunes Music Store anyway.

  1. kaisdaddy

    Fresh-Faced Recruit

    Joined: Apr 2005

    0

    That is exactly why...

    I left the Netherlands as soon as I finished high school. Here's a typical conversation in Dutch government:

    "We hebben een groot probleem!" (We have a big problem!)

    "Ik heb een idee, laten we de belastingen verheffen!" (I have an idea, let's raise taxes!)

    "Jij bent geniaal!!" (You're a genius!!)

  1. kaisdaddy

    Fresh-Faced Recruit

    Joined: Apr 2005

    0

    Having said that...

    ...nobody in the Netherlands is more than a 1 1/2 hour drive from either Germany or Belgium, so they can just go there to get their mp3 player.

  1. typoon

    Addicted to MacNN

    Joined: Oct 1999

    0

    Gotta love it

    I think this is EVERY gov'ts way of fixing ANYTHING. Raise taxes on the populace.

  1. legacyb4

    Mac Elite

    Joined: May 2001

    0

    New Business Opportunity

    Do I sense a great opportunity for grey market sales on iPods?

  1. porieux

    Baninated

    Joined: Mar 2001

    0

    hm

    I thought they were smarter than this over there!

  1. ronjamin

    Baninated

    Joined: May 2002

    0

    What a Strange Place.

    Yet again government is succumbing to the preditorial vampires in the music industry. some say a grey market, I say not. E-retailers will prevail from outside the netherlands, or a short road trip across the border to France, Belgium, Germany, or Britain.

    Could it be that the lawmakers in the Netherlands have been smoking too much pot? Afterall, ganga is legal there. Pothead bureaucrats.

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