iPod Tax Proposed

Government may impose levy on music players

26 September 2008 - The idea of an iPod tax is the latest to be bandied about by Ofcom, and Sky Satellite dishes, Freeview boxes and Internet subscriptions could also be subject to a levy.

Falling advertising revenue and an increase in viewers turning to digital channels are being blamed for commercial broadcaster’s reluctance to make non-profitable public service programmes.

The regulator for the UK’s communication industries has suggested that the new tax, imposed by the government, would be used to fund public service shows such as Channel 4 News, Dispatches, children’s programmes, arts shows and regional news.

Consumers not happy

The general consensus from consumers on the tax is overwhelmingly negative. 6 Music spoke to some shoppers on Oxford Street today (26th Sept 08).

One woman was indignant: “Why should we pay more? You pay tax when you buy the item. No, no more!”

Meanwhile a male shopper feels we pay a lot already: “No I wouldn’t really to be perfectly honest, I think there are enough taxes out there existing. You suffer advertising while watching TV, you pay enough to that extent I reckon.”

Computers and CDs face tax too

Consumers could also face a new tax on computers, blank CDs and DVDs under proposals mooted in Ofcom’s review of the future of public service broadcasting and is one of several funding options that have been outlined.

Ofcom awaiting public opinion

Meanwhile an Ofcom spokesperson told 6 Music that they are waiting to hear from you.

They said: “An industry levy is one in a series of funding methods which we are consulting on as part of our review of public service broadcasting. We look forward to hearing what the public and industry think of our proposals.”

So far Apple has declined to comment on the proposal.

The government will not make a final decision on the levy until early next year following Ofcom’s consultation, which closes this December.



Ruth Mitchell