EU threatens vendors with smartphone tax

The European Commission has proposed reclassifying smartphones as "multi-function devices", which would see them attracting up to 14 per cent in tax at a time when the industry is already under pressure to cut prices. The proposed reclassification, which was sent out to member states last week for comment and is reported by …

[David Hicks]

Wait, what?

I've had handsets that are capable of receiving mobile tv.

I have no interest in ever using the feature, but I guess I'll still have to pay the tax.

It' bad enough the UK gov bumping up their take every so often, but no the EU's at it too!

[Richard Gadsden]

Imports only

This is presumably an import tax - is there any chance it might result in smartphones being made in Europe? Nokia could build a factory in Finland, or Eriksson in Sweden, for example.

[Bassey]

Smartphone Tax not accurate

Surely it's not the inclusion of GPS or TV that defines a smartphone. This is a "feature phone" tax - at the moment. GPS will soon become as standard as a camera or MP3 player in mobiles. Not so sure about TV though. Nobody was interested in mobile TV in the 80s and 90s. I don't see why anyone thinks they'll be interested in them now just because it's integrated into your mobile.

[Andrew McLachlan]

Awesome more tax.....ummm why did I move to the US?

I think the fiscal answer is clear.....

Breathing tax is on it's way. "Welcome to England can I have some money now please"

[David]

Misleading article - this is an import tax!

This tax would apply only to phones made outside the EU i.e. Nokia's fine. Apple however, could be in trouble.

[Steve]

so?

Ship the phone without the software (=dumb) and make the software available on a non-EU website with a big disclaimer saying " not for EU" or "EU residents must declare this download and pay smartphone/dumbuser tax".

[Richard]

Tax law is interesting

Interesting thing tax law.

The government will of course bow to the EU. And break the law in doing so.

See, under UK law (that EVERYONE IS SUBJECT TO, including the government) you can't do this. In fact, there are many taxes that are collected illegally in this country.

The law states that you may only collect enough taxes to govern the country, I.e. you charge even the populace for the costs you incur. Anything else is stealing. You can avoid the stealing charge if you collect taxes in advance then don't use them and as such pay them back.

But as I said, the UK government is not averse to breaking the law (you may remember that signing the lisbon treaty was an act of treason which is still illegal in this country) so we'll see this tax enacted without protest. Certainly any protest from the populace they represent will go ignored.

-- Richard

[Anonymous Coward]

Is there a future for mobile PHONEs?

I have no interest in a mobile phone that is anything other than a mobile PHONE.

If this tax means that phones continue to be manufactured, then I am all for it.

On the other hand, hidden taxes do no one any good and I can see no benefit in all EU countries having to add taxes to modern equipment that is seen by many to be a security and safety feature in their lives.

Is this just another dumb tax to add to CD taxes, computer taxes, ...... ?

[Steve]

El Reg does it again

I the last couple of months I've noticed this BBC style jorno trash appearing.

Give us the full story! Is this an import tax?