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New media tax causes 130,000 Danes to return computers and mobile phones

The introduction of the new media tax has lead to 130,000 employees returning their employer financed computers and mobile phones to avoid the new charge.

As from 1 January Danish employees equipped with either an employer-payed computer or a mobile phone available for off-duty use are obliged to pay taxes of an amount corresponding to 3000 Danish Kroner. The obligation affects employees with any kind of employer-sponsored media, i.e. telephones, computers, internet, PDA's and so on, which are accessible off working hours.

The great number of renunciations is evident from a survey conducted by Greens Analysis-institute on behalf of the newspaper Børsen. At an overall comparison it appears that more than a third of all employees are affected by the new media tax.

Head of tax politics in Dansk Erhverv, Bo Sandberg, states that the renunciations are an expected result of the new tax but underlines that it will have great microeconomic consequences when so many reject computers and mobile phones because of the new tax.

In response to the survey the Danish Minister of Taxation says: "That means that we will typically see those with no work related need give up their devices". Thereby rejecting unexpected negative consequences.

From those 61 percent of all employees that are not affected by the new media tax, 9 percent - corresponding to 130,000 - have avoided the charge by giving up their employer-sponsored computer or mobile phone.

Source: Version2