ByEva Brain, writer at Creators.co

Netflix has received a bad news from the Government of Australia, which is about to levy a general sales tax on the monthly charges of the company.

The American Internet media streaming services, Netflix, has received a bad news from the Government of Australia, which is about to levy a general sales tax on the monthly charges of the company.

Netflix news reported that the country’s Finance Minister, Joe Hockey, has proclaimed that the state would impose taxes on all international digital services benefitting its citizens. The exchequer of the Australian state would now earn from the ‘downloads’ of movies, applications, music, e-books, games, and other services, such as consultancy and professional services. Netflix news today informed that a 10%GST would be levied.

An American expert, Tony Podesta, believes that the newly introduced tax would decrease the demand for the facility, as its content would be much more expensive than before. He has stated that the authorities could have easily earned revenue from other sources.

The GST is not new for the nation’s market as it is already charged on the digital products of iTunes and Google Play Stores. The new tax would not be collected until June 2017. Experts stated their view that the users would continue to benefit from the service and a minor increase in the price would not affect them. The alternate is either unconstitutional or four times more costly.

The media firm has performed well in the Australian territory, as it has overtaken its competitor, ‘Foxtel’. Previously, Foxtel and Optus were the only means through which the Australian users were able to view American content legally in a timely manner. Since its entrance into the country’s market, Netflix has grabbed more than 35% of the paid video market share.

Netflix breaking news affirmed that the country’s users are fond of the service’s American version, as it allows them to enjoy the full Netflix content library. A sufficient number of users are still logging up at $AU8.99 per month to benefit from an affordable cable service. Market sources revealed that the company’s rivals charge $AU50.00 per month for the same service.

Government sources highlighted that the state would earn $279,000,000 in the coming four years from the planned tax. The management of Foxtel has welcomed the state’s initiative, as it has stated that it would not only improve the conditions of the market but also add to the treasury. It should now devise strategies to ensure that its users are not affected by the plans of the ‘Abbot-led’ government. The users’ response would determine the success of the new financial reform.

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