France eyes electronics tax to finance public broadcasting - report

France could tax new computer, television and mobile phone sales by 1 to 2 percent to help fund its state-owned TV channels, Les Echos newspaper reported yesterday.

Asked about the newspaper report, Secretary of State for Consumer Affairs Luc Chatel told LCI television: “We are at the reflection stage … We will study different ideas for possible financing.”

Les Echos said the tax plan was discussed at a meeting at President Nicolas Sarkozy’s offices on Monday and, based on total consumer electronics sales of around 17 billion euros, could raise 170 to 340 million euros. Sarkozy announced plans to end advertising on state-owned TV channels last week. The channels currently get nearly 1 billion euros in advertising revenues.

Prime Minister Francois Fillon said on Sunday the government was considering a raft of measures to make up for the shortfall, including taxing private TV and telecoms operators. He said also the state-owned channels had been asked to make savings.

Source: Media Network, Reuters