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Technology Companies Slam European Commission Tax Proposals,
by Ulrika Lomas, Tax-News.com, Brussels
Wednesday, December 31, 2008
The European Commission has come under sustained criticism over its proposal to
put import duties of 14% on ‘multi-functioning’ mobile telephones
for customs purposes; the Commission has suggested they are no longer telephone
devices but are multi-use devices with telephone capabilities.
The European Information & Communications Technology Industry Association,
which represents more than 10,000 consumer electronics industry enterprises in
Europe including, Apple, Sony Ericsson, Motorola, and LG Electronics, has emphasised
that the reform could be devastating for the future of the high technology mobile
telephone market. It said:
"European companies would face a further costly blow to their operations
in the EU, at a time when many are struggling to maintain profitability, given
the economic crisis. We are witnessing a lack of joined-up government in the
EU. At a time when Europe is confronted with protracted recession, there is
a need to reassure consumers.”
“The Industry calls on the Commission and the member states to refrain
from any new customs decisions that will increase the cost of technology in
Europe, and instead accelerate the adoption of the pro-consumer, pro-technology
policies outlined in the Commission’s own Economic Recovery Plan.”
In a statement Nokia said: “While only a small number of sophisticated
mobile phones in the industry would be affected today, due to rapid technological
advances the number would likely rise significantly in the coming months and
years."
It was recently claimed by the Commission that the market would be worth somewhere
in the region of EUR7.8bn in 2013, and many experts believe that this figure would
be severely impaired by the proposed import tax.
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