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Auditions blog: " Yves Barbieux of the Belgian band Urban Trad and singer Helmut Lotti echoed Jarre's plea High value-added taxes on CDs pose a "life and death situation" to Europe's ailing music industry, French musician Jean-Michel Jarre said as European Union finance ministers discussed the issue at a meeting in Luxembourg without resolving it But music sellers will only lower their sticker prices after taxes drop, said Philippe Person, managing director of French music store trade group SDSD who presented an anti-VAT petition signed by 140,000 Europeans to support his case Stars Urge EU to Lower Sales Tax on Music Oct 7, 12:12 PM EST The European Union should lower sales taxes on compact discs by treating them as cultural works like recorded books rather than as electronic hardware, pop stars and other music industry representatices said Tuesday The VAT rate on recorded music starts at 16 percent in Spain and Germany and ranges as high as 25 percent in Sweden versus a 5 percent tax rate for recorded cultural works such as books Music sales slumped by nearly 11 percent in the first half of 2003 under pressure from a black market for pirated CDs that doubled in the last three years, according to the International Federation of the Phonographic Industry, a London-based music industry trade group "We have to respect these new media as we respect old ones," Jarre said, adding, music should "be considered slightly different from yogurt or from toothpaste Sixty percent of consumers would buy more CDs if VAT rates fell, the IFPI said The EU finance ministers, unable to resolve the issue, asked the European Commission for fresh suggestions to break the impasse "Positions have remained very divergent," said Italian Finance Minister Giulio Tremonti, the meeting's chairman |
