WRITTEN QUESTION E-3481/01

by Alexandros Alavanos (GUE/NGL) to the Commission

(8 January 2002)

Subject: Taxation of computers in Internet cafés on the same basis as gaming machines

Under Greek Law No 2954/2001, computers in Internet cafés are to be taxed at a special rate on the same basis as gaming machines. Many Internet cafés will go bankrupt as result.

Greece in fact has the lowest use of computers in Europe and such businesses help to familiarise the public in general and young people in particular with new technology and the Internet. Is the Commission aware of any similar system of taxation operating in other Member States? Does the Commission consider that putting computers on a par with gaming machines encourages young people to access and familiarise themselves with the Internet?

What results have been obtained to date from the multiannual action plan promoting the safer use of the Internet in regard to filtering and rating systems, self-regulation mechanisms, and the encouragement of awareness measures?

Answer given by Mr Liikanen on behalf of the Commission

(28 February 2002)

The Commission has followed the developments in Greece related to law No 2954/2001 and the taxation measures on Internet café enterprises.

In accordance to instructions issued by the Greek Ministry of Finance and clarifications that were given to the Commission services law No 2954/2001 and the meaning that it provides, for taxation purposes, to the notion of gaming machine does not include computers that are operating in the premises of Internet café enterprises solely for the purpose of providing Internet access.

Hence, Internet café enterprises are directly excluded from the application of the particular provision, to the extent that the computers which are situated within the premises of Internet café enterprises are used solely for the purpose of providing Internet access, use of the Internet and of the different Internet-related services and similar office-related work.

However, if these computers are used to provide Internet access as an excuse, but in reality they are used partly of fully for gaming purposes, then all the provisions under the legislation on gaming and gambling would be applicable.

The Commission considers positive that in this way it is clarified that the above mentioned law and the relevant taxation measures do not directly relate to or burden the operation of Internet café enterprises in Greece.

The instructions of the Greek Ministry of Finance explicitly exempt from the application of the law only Internet café enterprises. More particularly, the instructions mention that in the notion ofgaming machineare included all computers which are situated or operate, for economic gain, in places accessible to the public in general (hotels, cafeterias, associations halls of any kind and any publicly accessible place).

The Commission believes that this point merits further clarification, as there is the danger that the above mentioned taxation measures would function as countermeasures in the development of information society services and the expansion of publicly available Internet access points.

The Commission is not aware of any similar measures in other Member States.

As regards the Safer Internet Action Plan, altogether nearly 130 different partners in 17 countries are involved in projects funded by the action plan. 9 awareness projects are running or have been completed aimed at the various target audiences (children, parents, teachers).

The selfregulation.info project which started recently will be a one-stop clearing house for selfregulatroy information, models and research. 13 projects dealing with content rating and filtering are running or have been completed. Further information is available at http://www.saferinternet.org.