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10th October 2006
EC may up taxes on digicams with video clip capabilities
by Ian Burley


The Photo industry is lobbying the European Commission to shelve plans to impose additional double digit taxes on digital still cameras which can record video clips.

Read the press release: EC propose reclassication of digital cameras.

Discuss this news on the DPNow forum

According to a news release issued this morning by the Photo Imaging Council (PIC), a UK-based photo industry association, a battle is on to stop the European Commission from imposing extra customs duties of 4.9% and 12.5% on digital cameras that have the ability to record video clips. This would bring the taxing of such imports in line with camcorders. Practically all compact digital cameras include a video clip recording facility.

But there seems to be some hope that the EC could rethink, according to PIC:
"The international photo industry and photo traders have urged Brussels to comply with the Information Technology Agreement (ITA) of the World Trade Organisation (WTO), countering arguments that digital cameras with video function can be equated with dedicated camcorders in terms of customs legislation."

Everything hinges around the EC's interpretation of an agreed World Trade Organisation (WTO) exemption that would apply if there was confirmation of the categorisation of digital cameras as IT products.

With camera buyers already voicing concerns over the disparity in price of photographic equipment between Europe and the USA, the news of even more upwards pressure on European pricing is, at best, disappointing.

 
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