25% Porn Tax Due in Italy

Italy is to apply a punitive 25% tax on pornography, ostensibly to support its economic plan to head off recession. What is and is not to be subjected to the tax is to be determined solely by the state.

The measure has been on the books since 2005, but until now it has never been applied; a similar measure has also been previously been applied in that great bastion of economic liberty, France.

It’s not clear how the tax will be applied, given that Italy already applies a cripplingly high 20% sales tax; presumably it would be in addition to the consuumption tax to have the effect the government is after.

Previously, those responsible for the measure have denied it has moralistic overtones, saying that it was a purely economic measure, but in 2005 the Italian finance minister also called it an “ethical” tax, which likely suggests this is both a cash grab, and a populist swipe at a less defensible target.

The opposition are unsurprisingly silent on the matter, with the main resistance to the law coming from porn producers, whose billion or more Euro market looks to be under severe threat from this. It looks to be a difficult measure for politicians to oppose even if they are so inclined.

Via ANSA.

Let us hope this ludicrous and illiberal measure does not prompt other desperate nations to follow suit.