The French government is preparing to tax smartphones, tablets and all other internet-connected devices, in addition to broadening the current taxes for foreign video-streaming firms, in order to help fund the production of French cinema, music and literature.
The proposal, which forms part of the French government panel’s recommended updates to the country’s decades-old thicket of cultural aids and taxes, has been largely endorsed by French President Francois Hollande’s socialist administration.
The report suggested imposing a tax of about 4% on the sale of all devices, including gaming consoles and e-readers, that allow accessing cultural content via the Internet, adding the sector to TV, radio and Internet service providers (ISP) that are already taxed.
In addition, the report also included 80 recommendations that would target electronics manufacturers, such as Apple and Samsung Electronics, as well as major online video suppliers such as Google’s YouTube.
France culture minister Aurelie Filipetti said: "Companies that make these tablets must, in a minor way, be made to contribute part of the revenue from their sales to help creators."
France has increased concerns for the business community with a series of moves, which include blocking the sale of a local YouTube style service, Dailymotion, to Yahoo! by the French Industry Minister Arnaud Montebourg.