Italy’s cash-strapped government has decided to hike taxes on one of the country’s few vibrant industries, pornography, to help rein in the burgeoning budget deficit, government sources told Reuters Tuesday.
The “porno-tax,” which imposes an additional levy of 25 percent on all income from pornography, is contained in a package of amendments to the 2006 budget to presented in the Chamber of Deputies Tuesday or Wednesday, the sources said.
Under the amendment, subscribers to hard core television channels must also pay additional value-added tax of 10 percent. Altogether, the tougher tax-treatment of porn should bring the government some 300 million euros next year.
A recent study by the Eurispes institute estimated revenues for pornography and related industries in 2004 at some 1.1 billion euros, up 100 million euros from the previous year and up 27 percent since 1991.
That is equal to about one-third of the revenues for a company like Italy’s Mediaset, one of Europe’s largest broadcasters, or about the same as the Giorgio Armani luxury goods group makes.
Italians spent an estimated 247 million euros on pay-TV porn in 2004, up 63 million euros from the previous year, as more satellite operators offered clients subscription packages. reuters
