Tax on net to fund public television

EU COMMISSION CRITICISES NEW CHARGE WHICH RAISES MONEY LOST BY REMOVING ADVERTISING FROM PUBLIC CHANNELS. Internet, mobile and landline providers and private advertisers will be taxed to

fund a revenue gap caused by dropping adverts from public TV, President Sarkozy has announced. "Fixed and mobile telephone operators and internet service providers will be asked to

contribute to the height of 0.9 percent of their turnover," he said. Sarkozy said the television levy was expected to generate €80million. He confirmed that advertising after 20.00

would be stopped on all public channels from January 2009. A spokesman for the Fédération française des telecoms said it would vigorously fight what he called a "counter-productive and

illegal" tax, saying it would cost the industry €378million per year. The president of the Association des fournisseurs d'accès à internet Daniel Fava said the tax was “completely

disproportionate”. The European Commission has already criticized the plans based on an earlier parliamentary report which put forward a lower tax of 0.5%. "For the European Commission,

it is important to increase citizens' purchasing power and growth in Europe. It is not in favour of a new tax on sectors that are drivers of growth," said commission spokesman

Martin Selmayr. Sarkozy first announced plans for the broadcasting shake-up in January, sparking concerns he planned to downsize the public broadcaster, which is funded by a combination of

licence fee and advertising. Photo: flickr qthrul