The European music industry's fight for a lower VAT rate on recorded music is entering a crucial phase. French finance minister Francis Mer is expected to put the issue on the agenda of a meeting of the European Union's finance ministers June 3 in Brussels; the European Commission should then make its
proposal on VAT at the end of June.
The IFPI has frequently pushed for the VAT on music--currently set at 15%-25%--to be brought closer to the 5% minimum rate carried by other cultural products (Bulletin, Feb. 19).
The French government has been particularly aggressive in the push to reduce the VAT on music. Francois Léotard, the French government's envoy to the European Union, has held a series of meetings recently aimed at convincing the other member states to endorse the initiative. French minister of culture and communications Jean-Jacques Aillagon says finance ministers from Spain, Greece, Italy, Luxembourg, and Belgium have assured Léotard of their support.