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French website tax rejected

Senate kills 2% tax on Internet ads

The French Senate has rejected an amendment passed by the country’s lower house calling for a 2% tax on French-based websites disseminating video content.

The National Assembly’s proposal, part of an omnibus budget bill, would have imposed the tax on all advertising revenue for Internet sites displaying “cinematographic or audiovisual works or documents.”

As worded, the amendment may also have applied to news organizations.

After the Senate vote, budget minister Eric Woerthacknowledged that the amendment may have been introduced by the National Assembly “without sufficient prior consultation” with representatives of industries that would have been affected by the measure.

He also called for “deeper reflection” on the impact of new forms of taxation on players within the French audiovisual sector.

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