The European Union drops plans for new cell phone taxes

In December last year, the EU Commission proposed the introduction of a new tax that would have raised the price of navigation-enabled phones with 3.7%, and the price of mobile TV-enabled phones with 14%.

Luckily, Reuters reports that the European Union dropped the plans for the new taxes, as member countries voted against it today.

Nordic countries, alongside Europe’s two giant phone makers (Nokia and Sony Ericsson), have opposed the introduction of the new tax from the beginning.

“We need more products and businesses free of tariffs, not less, and therefore today’s decision and the backing that was achieved is a very positive signal,” declared Ewa Bjorling, Sweden’s Trade Minister.

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The higher prices would have probably slowed down the cell phone demand in Europe, where phone makers are already under pressure because of the economic downturn.

Author: Ilinca Nita

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