Netherlands May Support 'Old Media' With Internet Tax

by Ulrika Lomas, Tax-News.com, Brussels

30 June 2009

A Dutch government committee’s comments have sparked outrage amongst online publishers after it was suggested that the industry should be taxed in order to support the country’s printed newspapers.

Upon the request of Dutch Media Minister Ronald Plasterk, the Committee presented proposals to preserve the ‘old press’.

It is proposed that a levy of 6% will be imposed upon Internet Service Providers’ fees, with the proceeds directly channelled to traditional newspaper publishers.

In an effort to appease both sides of the debate, at least in the short-term, the Media Minister has mustered a fund of EUR8m to subsidise newspapers’ efforts to innovate their services, and provide wages to allow companies to hire trainee journalists. This will be funded by advertising on public TV and radio channels.

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