French independent labels trade body UPFI has called for the government to introduce a tax credit scheme for consumers buying cultural digital products online. Under this scheme, users would be able to offset part of their purchases, for an amount yet to be defined.

"We don't rely only on repressive messages," said UPFI President Vincent Frerebeau, founder of independent label tôt Ou tard. "We want that more people test buying music online, so they can realize the offer is attractive."

This measure is one of the eight presented by UPFI in a press conference in Paris, as its contribution to the government-backed Zelnik mission designed to improve the growth of legal digital services for cultural work

UPFI also calls for the creation of a tax on the online advertising market and of another one on ISPs' turnover. These taxes would provide funds to support investment on local music production.

"The Internet has largely built its value on content, it is time that it contributes to its financing," said Frerebeau.

UPFI has not defined the level of such taxes yet, but suggests part of the tax on the ISPs could be offset by a lower VAT rate (sales tax) on ISPs. This decision, Frerebeau stressed, would not require approval at the EU level.

UPFI also called for a lower VAT on music products overall, a request the French recording industry has been pushing in vain for the past 20 years.

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