FRENCH PARLIAMENTARIANS HAVE approved a so-called “YouTube tax” that will tax the advertising revenues of free online video services such as YouTube.
A Digital TV Europe report says the proposal will levy a 2% tax on advertising from online videos, rising to 10% when advertising receipts are linked to works deemed pornographic or violent. Online news services, where video is deemed a “secondary activity”, will be exempted.
The controversial tax is intended to create a level playing field between free and pay platforms and between French and international players, continues the report. Critics say that the tax will be difficult to enforce and that revenues will be insignificant.
