Nowadays, who doesn’t subscribe to a “triple-play” package? All operators offer these “3-in-1” services at nearly the same price. For less than 30 euros per month, consumers can subscribe to a package that includes Internet, television, and fixed-line telephony. An advantageous rate that might soon be a thing of the past. The subscription for “Internet boxes” could increase by 2 euros. Currently benefiting from a reduced rate of 5.5%, the Ministry of Economy plans to propose to the Élysée to raise the tax to 19.6% on combined Internet, television, and fixed-line telephone offers. The reason? With the removal of this tax niche, the government aims to gain “several hundred million euros.” It also seeks to meet the expectations of the European Commission, which lamented that the bills for subscribers to “Internet boxes” were subject to a reduced VAT rate, in other words, 5.5%.
A Measure That Causes Friction
Maxime Lombardini, the CEO of the Internet service provider Iliad (Free/Alice), deplores the government’s decision. According to him, this increase aims to fill the public deficits and has no connection to the European Commission. Last March, the European institution had urged France to modify its system regarding “triple-play” offers. “It is not aimed at an immediate action,” said Maxime Lombardini.
The government is looking for 4 billion euros to close its 2011 budget. Mobile phones are also in the spotlight. The tax applied to “Internet boxes” could also affect cell phones.
