Japan gives up on efforts to tax digital music players

Known locally as "the iPod tax," the Japanese government has been pushing for the levy since at least 2005. But now it appears as if the idea will be permanently shelved.

A tax of anywhere from 1 to 3 percent of the total media player purchase price would be tacked onto purchases. The measure is similar to proposals in Canada and elsewhere, where levies or taxes are used to compensate for losses due to piracy.

Not surprisingly, electronics makers were opposed to the measure. They said that the new tax would cut into their profits, although it should be noted that at most it would amount to a few US dollars.

A panel that had been tasked to develop the proposal into a bill that could be submitted to the legislature also failed to reach an agreement, further crippling the effort.

With the setbacks, the Agency for Cultural Affairs -- the government agency working on the proposal -- admitted there was "virtually no hope" of getting a law passed in the legislature.

Levies on electronics for copyright reasons already exist in Japan. However, those fees on older products are already included in the price so it is invisible to the consumer. The Japanese recording industry also attempted to push the idea for a tax in 2005; however, that proposal also met with similar opposition, and was scrapped by the end of the year. Manufacturers cited similar concerns as they did with this most recent proposal.