The French government has created a new tax, targeted to streaming music services operating in the country. President Emmanuel Macron announced the finalization of the levy, which is set to take effect in 2024.
Macron called the tax rate “a very low rate of levy.” More specifically, the rate will be about 1.5% of income (cited HERE).
Unsurprisingly, streaming platforms object to the tas, with Spotify seeming to take the lead in press reports.
“We take note of the government’s decision, which does not take into account the efforts made by many platforms including Spotify,” a Spotify spokesperson said as quoted HERE. “This is a real blow to innovation, and to the growth prospects of recorded music in France. We are evaluating the follow-up to be given to the implementation of this inequitable, unjust and disproportionate measure.”
Revenue from the tax is earmarked to support Centre National de la Musique, which exists to support French music industry stakeholders. This organization campaigned for the tax, and its general director asserts the tax to be “the only device which allows us to provide the CNM with sustainable and balanced financing,”
