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Harper government quietly implements the ipod tax

alexd

Administrator
Staff member
iPods face new tax under budget tariff changes
MIKE MOFFATT
The Globe and Mail


Not too long ago, the federal Conservatives were accusing opposition parties of wanting to implement an iPod tax. This supposed iPod tax was cited as evidence of the NDP and Liberals’ “high tax agenda.” In Budget 2013, however, the Conservatives have abruptly changed direction and introduced a hidden iPod tax of their own.

One of the estimated 1,290 tariff increases in Budget 2013 is on tariff code 8519.81.29, which includes a number of digital music players. Products that fall under this code, from the 72 countries that are losing their General Protective Tariff status (which include China, South Korea, Malaysia and Indonesia), will see their tariffs rise to 5 per cent from zero on Jan. 1, 2015.

The complicating factor is that this tariff increase only affects some digital media players, because not all devices that play digital music fall under this code. A Blackberry, for instance, while it can play digital music, would be considered a cellular phone under the tariff code and not be subject to the tariff increase. A device such as an iPad that plays videos as well as music would also fall under a different category.

Apple has four iPod products, all of which are produced in countries losing their GPT status. Three of the four products will face tax increases from this change. Apple has helpfully posted the Harmonized Tariff Schedule (HTS) code for all of its products. These codes are for use in the United States, but it is relatively straightforward to translate these to Harmonized System (HS) codes for use in Canada. The three models of iPod that will experience tariff increases include the iPod shuffle (tariff code 8519.81.29), which will be assessed a 5-per-cent tariff where none was charged before. The iPod nano (8521.90.90) and iPod classic (8521.13.90), which were previously tariff free, will now be charged a 6-per-pent tariff.

It is difficult to assess the impact of these tariffs on the end consumer, as the tariff is paid by the importer on the declared import value, not on the entire sticker price. But given the relative market power of Apple and that this tax will also be applied to Apple’s competitors, expect nearly all of this tax to be passed along to the end consumer.

Three years ago, Conservative Dean Del Mastro told Parliament “our government knows that the last thing Canadian families and consumers need is a massive new tax on iPods and other digital storage devices.” Yet in budget 2013 we have the “last thing Canadian families and consumers need.”

from the Globe & Mail:
iPods face new tax under budget tariff changes - The Globe and Mail

Mike Moffatt is an assistant professor in the Business, Economics and Public Policy group at the Richard Ivey School of Business, University of Western Ontario.
 

Hi i'm God

TRIBE Member
This shit should be front page where is the 'left wing media' to call out this kind of hypocrisy.

(link doesnt work, someone got to the G&M)
 

DJ Vuvu Zela

TRIBE Member
There seems to be some confusion about the tariff and what electronics it will affect. The conservatives claim ipods won't be affected because devices you plug into a computer are exempt, while the NDP are interpreting the change as affecting certain ipod models.

What is certain is the changes made by the Harper government will raise many electronic prices.
 
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