French MP proposes 1% tax on direct marketing

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PARIS -- French Socialist MP Jean-Marie Le Guen has proposed an amendment to the Law on Communication to levy a 1% tax on below-the-line print and use the money this raises to subsidize the daily and weekly national and regional press.

Catherine Trautmann, the minister responsible for communication, is supportive of the taxation proposal, which is now to be presented to the Assembl1e Nationale.

Direct marketing accounted for 31%, or $7.9 billion, of the total advertising spend in France in 1996, according to a study by Havas Media Communication. Spending on direct marketing increased by 4.2% in 1996.

Of the total direct marketing sector, the print element (of mailings, leaflets etc) that would be subject to the new tax, accounts for some $7.4 billion.

Copyright October 1997, Crain Communications Inc.

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