However, the tax is not completely new. Rather, it is an
extension of an existing law that applies to company benefits such
as the free use of a company’s telephone for personal calls.
Carsten Meincke, a spokesman for AOL Europe, said:
“It’s just another instance of the typical
German need to try and regulate everything… It’s hideous how these
small-minded ideas are thought up by state bureaucrats trying to
earn an extra buck… It will be a big inhibitor to the evolution of
the internet in Germany.”
The new regulation will not apply to companies with flat rate
internet access – only to per minute access, so many companies will
not be taxed. It also grants what amounts to a significant
allowance of tax exempt personal surfing. Critics say the law is
unworkable because it is often hard to draw the line between work
related and non-work related internet use. Effective regulation,
they suggest, could cost more than the revenue the tax would
generate.
Under national law, the 16 states of Germany will have the power
to overrule the new regulation, should it be introduced.
