Whilst I acknowledge that the BPI have been very heavy handed in the administering of a levy to product bought outside the EU, part of the CD WOW increase also comes from new VAT rules. So don't let your anger also hide the fact that the government have had their fingers in the pie too.
But it's just like them to hide behind another debate in an attempt to come out smelling of roses.
People who have read my correspondence in the past also know that while I'm not in the pocket of the BPI, I am involved in the recording industry, and do not condone copying or free downloading of copyright material.
But that is a debate that has fully run it's course.....
I am a strong believer in free trade, however, and that means being able to buy a legitimate product, at the cheapest price, wherever that may be sourced from.
So just don't get me started on the regional coding debate!
I think that the majority of the cost from CD WOW will be covered by the details of an extensive news story which was featured on TV and the press late last year.
The government have found a way (isn't it always them) of levying VAT on all goods imported into the uk.
Incidentally the US have adopted the reverse.
That means the importer has to levy a charge and any reasonable costs in the administering of that charge at point of sale for good being imported from outside the UK / EU.
The news at the time reported:-
The European Union has agreed new rules forcing internet retailers based outside the EU to levy value-added-tax (VAT) on sales to customers within the 15-nation bloc.
At present, EU consumers can avoid paying VAT on many products by ordering them online from US-based e-commerce companies.
The online retailer - or 'e-tailer' - will levy VAT on all sales to EU customers at the rate applied by the country it is registered with.
That country will in turn divide the revenues between the other EU nations according to where the sales are made.
National VAT rates vary widely within the EU, ranging from 15% in Luxembourg to 25% in Sweden.
The new VAT regime will not only apply to goods bought online but also apply to sales of products downloaded from the internet, including software and online film or radio subscription.
Customs and Excise note 702 has been updated to cover it.
Stand by for the boring bit......
"Import VAT is the transaction tax levied on imported goods. Goods are treated as imported when:
they arrive in the UK directly from outside the EC and you enter them for home use in the UK, or customs duty otherwise becomes chargeable on them.
In short, the moment when customs duty is due on the goods is the time of importation for VAT purposes. Import VAT includes VAT due on goods imported for the purpose of business, private importations and importations by partially exempt traders."
In short not the record industry to blame for once, but that nice Mr Brown!
Hope it clarifies things.
Karma