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EU plans increase in TV, GPS-enabled phones tax

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The European Union plans to introduce a tax on mobile phones incorporating TV receivers and/or GPS. A 14% tax would be applied on devices with TV receivers and a 3.7% tax on GPS enabled phones.

Maria Assimakopoulou, a spokeswoman for the EU Tax Commissioner Laszlo Kovacs, told Reuters that it is going to take at least 6 months to make a decision about this matter.

Nokia and Sony Ericsson are the two biggest selling OEMs in Europe, they have already made public their declarations of inconformity about these measures by the EU. A Nokia spokesman claimed that even though there aren’t many phones out there with these kind of features, in the near-future many more devices will be enabled with location-based services and TV receivers.

It is difficult to understand why the EU plans such a move to an already ailing industry that has been severely affected by the global economical crisis. This would affect the development of technology, since it would become more expensive for the end-user to buy this devices and less people would have access to GPS and TV-enabled phones.

High-end devices are already expensive, and it is hard to imagine buying phones with prices 14% higher than they are at the moment, governments must realize that this is not a good move to collect more funds. The consumer should hope that the EU falls under the pressure of Nokia, Sony Ericsson and other companies so they can avoid implementing these taxes.

The European Union is a political and economical union that manages the decisions taken in 27 countries, The EU has managed to implement a unified monetary system along with a complete system of laws that applies to all countries. Decisions such as the one mentioned above would affect many countries which are the primary markets of mobile phone manufacturers, thus justifying their complaints on these plans.

[via: Reuters India]

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By , International Correspondent on Dec 21st, 2008 GMT +2

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