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Japan to tax iPod sales.

Don’t get any ideas Mr.Darling!

It’s been tried before. But many so Japanese firms objected that the plan fell by the wayside. This time it may be a different story. It looks likely that the Japanese government will bring in a tax on all portable digital music players and PVRs - ‘iPod tax’!

The new law is due to come into force before August, coinciding with the start of the Beijing Olympics. Analysts are expecting a huge spike in the sales of hardware and home TV recording…sounds more like a tax for the sake of tax rather than protection for the industry - I could be wrong. The taxes raised are expected to bring in about £5 million per year. The cash will be spread given to TV companies, musicians and other media creators.

To be fair, £5 million isn’t a huge amount when you consider the annual turnover of the large companies. On the street, Bob Average won’t be too bothered either - it adds up to a pennis on the price. So why the big deal? Piracy, in a word. The law would appear to be stating that you are guilty of piracy unless this tax is paid. What about the consumer who uses a device only for content that is free?

Changes the picture a little, doen’t it? Don’t expect the electronics industry to go down without a fight.

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