Canada declares war on technology

[Squawk 8888]

On January 1, 2003 the Government of Canada intends to expand the tax on blank tapes & CDs to "devices used to record music", including hard drives. The proceeds will be used to line the pockets of rock stars and fill the coffers of record companies. The proposed rate of $21.00 per gigabyte will increase the cost of a new computer by more than 50%.. .. .Given the scale of this act of extortion it's difficult not to conclude that Sheila Copps, the Minister behind it, is getting some sort of payoff from the music industry.

[spannersatcx]

Surely the primary function of a HDD is not for music so how can that be justified? Should it also include compact flash cards for Digital cameras/pda's the list could go on. Sounds a bit iffy to me. <img border="0" title="" alt="[Mad]" src="mad.gif" />

[Squawk 8888]

The official line is that they're only going after mp3 players, but these are the same people who said they'd abolish the GST. The wording allows for all forms of data storage to be taxed.

[innuendo]

There is also a proposed increase in the tax on blank CDs. Those of us who use them for back up and/or storage of data, particularly digital photos are being considered guilty of music piracy and being required to pay a tax or fine. I am not impressed.. .I don't see why, having honestly bought a recording I am not allowed to make a back up in another format for my private use. EG. putting my vinyl onto CD or Mini Disc for archive purposes.. .The music industry may have a problem but this is too wide a brush to address the problem.

[bblank]

The $0.59CDN increase in the blank CD-R tax is, by itself, about the total cost in US$ of the disk, after conversion. Will the GST apply not only to the disk but to the (disk + media tax)? Will the PST be applied to the entire lot, (disk + media tax + GST)? Even analogue will not be spared - tax on blank cassette tapes will go up to $0.60 per tape. . .. .This tax should lead to expanded shopping lists for those trips to Plattsburgh and Burlington. Disgraceful, really. In the good old days people just smuggled cigarettes and booze across the border. . .. .Why aren't Canadian writers lobbying the government for relief from photocopy machines? Surely Canada needs a stiff tax on blank paper.