Village Squire, 1976-07, Page 29Music
Record industry looking for tax break
Concerns surrounding sales taxes, invest-
ment incentives and the importation of
master tapes were aired at a recent meeting
between Ontario Industry and Tourism
Minister Claude Bennett and representatives
of the Canadian Record Industry Association
and the Canadian Independent Record
Producers Association.
The two associations in their brief to the
Minister stated the current seven per cent
sales tax applied on master tapes produced in
Ontario is unjustified and tends to discourage
original productions here in Ontario.
They contend that production of the
masters is a step in the overall production of
records, not a final product. The actual record
sold at the retail level is where the tax should
be applied, they state.
Mr. Bennett said he appreciated the
position of the associations and would see
what action could be taken through the
Ministry of Revenue. The Associations are
submitting a brief in this regard directly to
the Minister of Revenue.
"Investment in the recording industry is
being neglected by the government," said
Terry Lund, president of Columbia Records of
Canada Ltd. and the industry spokesman.
"The total retail revenue generated by the
recording industry in Canada is S250 million
annually/' he added, "a figure which
exceeds the revenue obtained from theatre
and professional sports combined.
"Up tothis point financing has been
absorbed by the industry itself whereas film
and book publishing have benefitted from
government assistance. We would like to be
treated on an equal basis."
Mr. Bennett felt an appeal to the federal
government should be made and said he
would endorse the proposal.
The Minister asked representatives to
assess the level of talent in the province.
All agreed that the number of good sing s
and groups was excellent and had sh n
great improvement in the past few years So
good, in fact, that the recording industry
can't sign as many of them as they would like.
Concern was also expressed over a possible
move by the federal government to increase
the value of duty on imported master tapes.
The associations felt such a move would be
detrimental to the industry as well as
increasing prices to consumers
"It is our view that a higher import duty on
foreign masters would not sell one more copy
of a Canadian recording," said Lund.
"The status quo of about $75 per master
tape should be maintained," he ,added.
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VILLAGE SQUIRE/JULY 1976, 27