Japan decides against iPod tax

For a number of years now Japan has been considering introducing a new tax on digital music players dubbed the “iPod tax”. If put into law it would mean up to 3% of the price of a new music player would go directly to the music industry for re-distribution to copyright holders and musicians.

The idea has this week been dropped, however, mainly because the group discussing its implementation have come to a stalemate. This is not the first time it has happened either, with a similar crossroads being reached in December 2005.

Electronics manufacturers had been putting pressure on the Japanese Agency for Cultural Affairs to stop the legislation going through. The agency did present a compromise earlier this year that would limit the devices the tax applied to, but that did nothing to appease the electronics industry. As it currently stands the tax is still under discussion, but with no real direction any more. The electronics industry is against it and there is a fear that consumers will be charged twice for copyright fees due to a charge also being applied to the price of digital content.