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Portugal Is Considering a "Terabyte Tax"

An anonymous reader writes "As a proposal to avoid becoming the 'next Greece', a Portuguese opposition party has proposed a tax on storage. The party claims that the tax will not effect the average citizen and is mostly levied at business users, but internal storage on mobile phones means a 64GB iPhone could be €32 more expensive. From the article: 'The proposal would have consumers paying an extra €0.2 per gigabyte in tax, almost €21 extra per terabyte of data on hard drives. Devices with storage capacities in excess of 1TB would pay an aggravated tax of 2.5 cents per GB. That means a 2TB device will in fact pile on €51.2 in taxes alone (2.5 cents times 2048GB). External drives or “multimedia drives” as the proposed bill calls them, in capacities greater than 1TB, can be taxed to the tune of 5 cents per gigabyte, so in theory, a 2TB drive would cost an additional €103.2 per unit (5 cents times 2048GB)."

45 of 353 comments (clear)

  1. Spain, Italy and Greece by Taco+Cowboy · · Score: 5, Funny

    Before long, Spain will have its Gigabyte Tax

    Italy will chime in with its own Megabyte Tax

    And Greece? They'll have the honor of having the world's first Kilobyte Tax

    --
    Muchas Gracias, Señor Edward Snowden !
    1. Re:Spain, Italy and Greece by Lord_Breetai · · Score: 5, Funny

      Before long, Spain will have its Gigabyte Tax

      Italy will chime in with its own Megabyte Tax

      And Greece? They'll have the honor of having the world's first Kilobyte Tax

      I guess that leaves the byte tax for Ireland.

      --
      "You are only young once, but you can be immature forever." -www.animemusicvideos.org
    2. Re:Spain, Italy and Greece by Taco+Cowboy · · Score: 4, Funny

      Before long, Spain will have its Gigabyte Tax

      Italy will chime in with its own Megabyte Tax

      And Greece? They'll have the honor of having the world's first Kilobyte Tax

      I guess that leaves the byte tax for Ireland.

      It's more like "Tax Bites" for the Irish :)

      --
      Muchas Gracias, Señor Edward Snowden !
    3. Re:Spain, Italy and Greece by SuricouRaven · · Score: 4, Insightful

      Canada too. Not sure about the US and UK, but wouldn't surprise me. Not as heavy, but the same idea: Tax all storage and media players on the assumption that they'll be used to infringe, and give the money to any major copyright holder with enough political clout to get a share. Independant artists obviously get screwed because it'd be impractical to administer.

    4. Re:Spain, Italy and Greece by ByOhTek · · Score: 2

      The US doesn't have a storage quantity tax.

      Honestly, such a tax is retarded, especially with the way storage increases (~1000x every 10-12 years?), you'd have to readjust the rates almost yearly. Anyway, you typically tax based on the prices of what is charged for purchasing/selling something - so, why not just put a % tax on storage devices, rather than a tax on the absolute amount of space.

      --
      Self proclaimed typo king, and inventor of the bear destroying coffee table (patent not pending).
    5. Re:Spain, Italy and Greece by Sam+Andreas · · Score: 5, Insightful

      The unreasonable part is that you're putting a tax on something that is ridiculously changeable. Right now 1 Terabyte seems a lot, so to pay an extra few euro for a hard drive seems ok.

      In 2002 the Canadian copyright lobby proposed a levy of 0.8 per megabyte on removable flash media and 2.1 per megabyte on non-removable storage in an audio player (in addition to the existing levy on blank audio tapes / cd's).

      That means that the 16GB SD card I bought recently for my camera would have cost not $10 but $141 and a 32GB media player would be an extra $688.

      Those sizes were unheard of in 2002 but only ten years later are commonplace. In another ten years, a gigabyte tax will probably be just as absurd.

    6. Re:Spain, Italy and Greece by mhajicek · · Score: 5, Funny

      Would data compression be considered tax evasion?

    7. Re:Spain, Italy and Greece by afidel · · Score: 3, Insightful

      Actually the cost per GB has exceeded Moore's law, in 1980 the cost per GB for HDD storage was $1,000,000, thirty years later it was $.10 exceeding Moore's law by over 3 18 month cycles. citation.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  2. Killing off storage? by SuricouRaven · · Score: 2

    Perhaps that's the idea. This is a copyright-inspired effort, after all - and with the move to the cloud and it's inherent ease of central control, perhaps the thinking behind such high taxes is that ordinary people cannot be trusted with so much storage of their own. They might misuse it for piracy.

  3. Outdated by GothicKnight · · Score: 5, Insightful

    **OLD** This law draft was already discarted like 2 moths ago.

    1. Re:Outdated by SeaFox · · Score: 4, Funny

      ...discarted like 2 moths ago.

      So into the flame it went?

    2. Re:Outdated by ThatsNotPudding · · Score: 3, Funny

      **OLD** This law draft was already discarted like 2 moths ago.

      By Renee, attracted to a candle flame.

    3. Re:Outdated by luder · · Score: 3, Informative

      It was not completely discarded, it was canceled after all the criticism, but they already said they're revising the proposal and will present it again.

       

  4. Maths by Spad · · Score: 4, Insightful

    Doubling the price of a 2Tb external drive? You're going to have to pirate a *shitload* of stuff to make up for that.

    1. Re:Maths by bmo · · Score: 5, Funny

      It's Europe, so it will have to be a Metric Shitload, which is itself different from the Imperial Shitload, which is 1.125 American Shitloads

      --
      BMO

    2. Re:Maths by imikem · · Score: 2

      So this means Brits and Eurozoners are more full of shit than Americans? I wouldn't have thought that even possible. They must have better compression algorithms over there.

      --
      Perscriptio in manibus tabellariorum est.
    3. Re:Maths by bmo · · Score: 5, Funny

      Shit compression algorithms work only once, at the factory where it is forced into bags by magical and undocumented processes that happen at the quantum level. The factory is owned and operated by entities outside our Universe who have refused repeated inquiries about this process.

      Shit is incompressible once out of the bag. You can never put it back in, hence one definition of a blivet which is "10 pounds of shit in a 5 pound bag" equating to a 2:1 compression ratio at the factory.

      People have tried to put shit back in the bag once it has been let out. Einstein, and Bose thought they got close to a theoretical compression, which they called a Bose-Einstein-Shit condensate, but they failed to take into account dark energy, which is an opposing force that tends to spread shit everywhere.

      When Edwin Hubble discovered the expanding universe through red shifts, he exclaimed "Holy Shit!" and "What is this shit?" not knowing at the time that shit is the actual source of the dark energy speeding the expansion.

      Minkowski described "shit cones" describing the causality of shit.

      Stephen Hawking, in his famous paper proved through Feynman-Shit diagrams that black holes evaporate because they "lose their shit."

      At the macro level, sometimes this is also measured in worm cans. Worms eat shit, which is probably why they too are incompressible once out of the can.

      --
      BMO

  5. 1tB != 1TB by Anonymous Coward · · Score: 3, Insightful

    Am I the only one that thinks that people might finally complain that they're paying tax on the extra 24 MB in every GB without getting them?

    1. Re:1tB != 1TB by Anonymous Coward · · Score: 2, Informative

      That's not the problem. The problem is that you consider that kind of bullshit is acceptable. Here in the old continent when you say I'm selling this for 500€ it means that you actually have to sell it for 500€. Not for 600€+taxes+mandatory tip minus coupon-filling bonus for limited number of people who fill some bscure criteria. You'd get sued for that, it's considered fraud.

  6. This proposal was rejected. by Celexi · · Score: 5, Insightful

    As far i know ( i live in Portugal ) other than this being old news, it was rejected by all other parties other than the one attempting to get this passed and was rather laughed about because of it here.

    1. Re:This proposal was rejected. by Splab · · Score: 5, Funny

      Dude, seriously? What right do YOU have to come here and destroy the rants with facts? This article is the perfect fear and trolling opportunity and here you are, ruining it with facts.

      Shame! I said SHAME! on you!

    2. Re:This proposal was rejected. by cpghost · · Score: 2

      The only people who truly don't pay any tax are the ones rich enough to hire the best accountants.

      Yes. But don't forget those who pay negative taxes, a.k.a. receiving handouts from the social welfare system. They do pay many indirect taxes like sales tax, but that is more than compensated for by their tax-subsidized income. Sure, it's not huge amounts of money we're talking about when seen on an individual basis, but on a national scale, depending on the size of the country and economy, that's many billions of negative taxes per year.

      --
      cpghost at Cordula's Web.
  7. exponential by mechtech256 · · Score: 5, Insightful

    A tax that increases at an exponential rate, what more could a government hope for!

  8. Way to kill the electronics retail business by arkhan_jg · · Score: 3, Insightful

    As I understand EU free-trade rules, as long as the appropriate taxes are paid in the country where goods are bought (inside the EU), the government cannot then levy additional taxes when imported, either directly (in the boot of a car) or when shipped.

    So this just seems a great proposal to kill all domestic sales of electronic goods with drives in - iPads, smartphones, photocopiers, laptops - and relocate them to Spain instead. I'm sure the Spanish government wouldn't mind, but it doesn't like it's going to do much to help Portugese debt.

    --
    Remember kids, it's all fun and games until someone commits wholesale galactic genocide.
    1. Re:Way to kill the electronics retail business by icebraining · · Score: 2

      Yeah, but your VAT/IVA is only 19%. When it gets to 23% like here in Portugal buying from abroad starts to make a lot of sense.

  9. Old & Inaccurate by Anonymous Coward · · Score: 5, Informative

    It was not a proposal to avoid becoming 'the next Greece'. It was a proposal to "help" artists.
    In reality it was just another levy (we have several) to benefit some corrupt goons on a local "rights" association. And as you might guess it, they don't help artists that much. Just their pockets.

    It's old because the parliament shot it down after an active online campaign by internet activists and a couple of politicians with common sense.

  10. Absurd by geogob · · Score: 2

    ... how do they expect this to work !? People will simply buy storage in other EU countries. But I doubt anyway that such a farce could ever pass.

  11. nitpicking: GB vs. GiB by moronoxyd · · Score: 5, Insightful

    That means a 2TB device will in fact pile on €51.2 in taxes alone (2.5 cents times 2048GB).

    Since when do manufacturers of hard drives use Base 2 to describe the size of their hard drives?
    They don't, so it should be 50 € (2.5 cent times 2000 GB).

  12. Aggravated tax? by Radak · · Score: 2

    I can understand that taxes might be aggravating, but was this summary written by a third grader? I'm pretty sure submitter meant aggregated (or more likely aggregate).

    (He/she also meant affect.)

  13. Meanwhile, in Italy by deepsky · · Score: 3, Informative

    the government has considered taxing SMSs by 0.02€ each. (This is not a joke)

  14. Re:€0.2 = €0,02? by trnk · · Score: 4, Informative

    It's Verizon Math! €0.2 per GB would be €1 for every 5GB (€200 TB). Not that we ever check submissions here on /.

  15. Penis Size Tax? by jackhererUK · · Score: 4, Funny

    If you are going create an arbitrary tax on the size of something that affects an arbitrary section of the population why not create a penis size tax. It could be entirely self declared with no verification. The results should be made available on a public register, listed in order of length x girth. I'm sure that would raise a fortune.

  16. Re:Dear Portugal by Opportunist · · Score: 3, Interesting

    No, a tax on idiotic laws. Every time someone proposes a law that will be nixed by the supreme/constitutional court because it violates other laws, tax the idiot who wasted valuable parliament time to get a moment in the limelight.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  17. Depends... by AliasMarlowe · · Score: 4, Interesting

    Something like this is already in Finland.

    The rates in Finland are somewhat lower than those proposed for Portugal. Moreover, elsewhere on that site they say what consumers get in return: "Everyone is allowed to copy published works, such as music, movies, television and radio broadcasts for their own private use in Finland."

    It is also quite clear that the compensation allows copying of movies and music on disks borrowed from libraries and suchlike. No doubt, the RIAA and MPAA would be a little queasy at such provisions in larger markets.

    --
    Those who can make you believe absurdities can make you commit atrocities. - Voltaire
  18. Re:Just one more tax... by Opportunist · · Score: 3, Interesting

    As long as they are still forced to buy war material from Germany and other EU countries instead of using that money to consolidate, I see little hope for Greece.

    The whole "bailout fund" scam is nothing but a bailout for EU companies that sold crap to Greece and would now have to realize a loss.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  19. Just tax the crap out of cell phones by gelfling · · Score: 2

    See the efficacy of taxes is where you gouge something that most people can't or don't want to do without like gasoline, alcohol, tobacco. Cell phones are ubiquitous to the point where even the UN considers them a basic human right. So naturally the plan must be to gouge and gouge and gouge some more. Double, triple, quadruple the cost of handsets and data transmission.

  20. Re:640GB * 0.2€/GB = 128€ by monkeyhybrid · · Score: 2

    It's €0.02 per GB, not €0.2. Article and summary both get that wrong.

  21. Re:Regardless by aurispector · · Score: 4, Insightful

    Yep. Pretty much the entire western world has a spending problem, not a revenue problem. Yet the politicians and policy makers consistently get it backwards.

    It's the kind of magical thinking that caused Kagan to say "It's just a pile of federal money", apparently not realizing that it all comes from taxes on you.

    --
    I have mod points. The reign of terror begins now.
  22. Re:Dear Portugal by plover · · Score: 5, Insightful

    No, a tax on idiotic laws. Every time someone proposes a law that will be nixed by the supreme/constitutional court because it violates other laws, tax the idiot who wasted valuable parliament time to get a moment in the limelight.

    Hell with that. I want a "three strikes and you're a despot" law. If you voted "Aye" to violate my constitutional rights with some stupid law, and the supreme court overturns that legislation, and you've done this three times, you are guilty of being a serial tyrant and should be sentenced to not less than 10 years in a federal prison. That applies to everyone who voted for the law, not just the guy who signs it (although it could certainly start with him, as he took an oath to defend the Constitution when he entered office.)

    No statute of limitations, either. You could be sleeping in your bed 10 years after leaving office, and if the Supreme Court overturns your 15-year-old crappy law, the ninjas bash down your door, haul you out of the arms of your mistress, and drag your butt to jail. None of these last minute help-my-buddy-in-the-industry-laws like pardons happening on the last days of office.

    Congressional sessions would be over pretty damn quick, don't you think? Some idiot puts up a law written by lobbyists for the industry, and every other person in congress would immediately say "Um, I vote NO, right now. Who wants to go get a drink with me?"

    --
    John
  23. Re:Regardless by rev0lt · · Score: 2

    You should. Printing money depreciates currency, and on a country highly dependent on energy imports and raw materials such as Portugal, the result would be a massive increase on the cost of energy, transport and production. Yes, even worse than now (I'm also portuguese).

  24. Re:Dear Portugal by Eskarel · · Score: 2

    If we had a supreme court which weren't a bunch of right wing nut jobs you might have a point, but I'd like my elected officials to go against the wishes of the douche bags who gave us the Citizens United decision.

  25. Re:Regardless by LDAPMAN · · Score: 2

    Then please enlighten us as to how the Left views money.

  26. Re:Regardless by khallow · · Score: 3, Insightful

    but it is much easier to fix the structural flaws in a growing economy vice an economy in an austerity death spiral.

    One of the structural flaws being that there's not enough political will to address them until the economy falls into the above trap. As I see it, repeatedly and routinely getting into the above situation is worse than a rare bout of "austerity death spiral" which is combined with credible structural reform.

  27. Re:Regardless by jedidiah · · Score: 3, Insightful

    Yes. That is a spending problem. No one planned for the likelihood that revenues might decrease and that we could have a "lean year". This is a basic fundemental problem that humans have been dealing with since the beginning of civilization.

    You save up for a rainy day.

    Yes. Having no rainy day fund is a spending problem.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  28. Re:Regardless by cant_get_a_good_nick · · Score: 4, Interesting

    Not sure if you're trolling or just clueless about money. But I'll bite. Oddly enough you're wrong about both sides, so at least you don't have an agenda (that I can see).

    All money value is theoretical, which what bugs me most about Ron Paul and the neo-goldbugs. Even gold has no value other than what we give it. We had to pick something of value, and gold just matched the characteristics best scarce but not too scarce, easily workable by ancients (smelts in the hundreds, not thousands of degrees), doesn't oxidize, etc.

    BTW: Fractional Reserve banking was not created by bankers or the Left or the Right, but by goldsmiths in Britain who realized that when they started to create these notes that drew on gold deposits, they could create more than the deposits on hand. As long as things were stable and a small subset of people ever asked for their gold at any given time (we'd call this a bank run today).

    Ownership of money is not limited - it can be created or destroyed as needed. Witness what the Fed had done during the Great Recession, creating dollars out of thin air. Why do they have value? Because we think they do.

    The fruits of labor? The right is more about investment and solidity of value than worrying about labor. They worry more about capital markets, which would be hurt if inflation is high.

    Governments tolerate light inflation for a few reasons. Mostly because it changes people's timelines for investment to the present not the future. I'll buy something now if i know it will be more expensive tomorrow.

    Heavy inflation discourages investment - if I know the money i will get for this product 3 months in the future is less than the value of the investment now, I will not make that investment.

    Deflation is even worse, it sets up a vicious cycle of no investment and layoffs. That's why we tolerate low inflation rather than zero inflation - don't want to be even close to dipping into deflation.

    Please, go listen to old episodes of Planet Money, they're very informative.