Ottawa may add huge tax to MP3 players
Fri. Mar. 15 2002 12:30 PM

It could cost music lovers a lot more the next time they try to listen to a tune downloaded from the Internet if the federal government gets its way.

Heritage Minister Sheila Copps is proposing a tax on MP3 players to the tune of $20 a megabyte. That would double the cost of a digital player that now sells for about $400.

Copps says the money will go into a fund for artists who lose royalties from copied songs. The government has publicized its proposed levy to invite public comment and has not said when it will bring it in.

MP3 players are small, portable music players that can store hundreds of songs downloaded from the Internet.

Opposition MP Grant McNally calls it the "Copps Stealth Tax'' and predicts it will dry up the market for MP3's.