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Day: February 25, 2021

Polish digital ad tax will paralyse consumer choice

Earlier this month, Polish government unveiled its plans to tax digital advertising.

It is argued that the so-called ‘solidarity levy’ is needed to help mitigate the coronavirus economic damage by raising funds for healthcare, culture, and heritage. However, along with bringing a severe economic disruption in the form of additional tax burden, the ‘solidarity levy’ will also be a final nail on the coffin of freedom of press and consumer choice in Poland.

After expected implementation in July 2021, media service providers and publishers (advertising through television, radio, cinema, and outdoor advertising media) whose advertising revenue on the territory of Poland exceeds PLN 1 million will be ​obliged to pay the new tax. Levy rates differ depending on the good advertised and the type of advertising, which has an explicit element of discrimination to it. Media (except the press) will pay from 2 per cent to 10 per cent. For online advertising the contribution will be 5 per cent, and that is to include digital giants. Sweetened beverages ads will be taxed at a higher rate which signals the Polish government’s drift towards more paternalism.

Through the introduction of a new contribution, the Polish government wants to kill two birds with one shot: punish independent media for its reliability and big tech for its digital ads success. At the core of this new policy, is the desire to level up the state’s role in shaping public opinion and increase its role in the digital market.

Unlike state-funded TVP channel that will be compensated through subsidies, private publishers and broadcasters such as TVN will be critically hit by the solidarity levy. According to a 2019 survey by ​Institute for Social Research and Market (IBRiS), the trustworthiness of TVP Info, is negatively ​assessed by 43 per cent of respondents, while 56 percent endorse TVN’s main news program “Fakty”. Hence it doesn’t come as a surprise that the Polish government wants to tax diversity of opinions out of the media space despite there being a great demand for it.

During protests against the tax on February 10th, Polish independent media suspended their coverage giving Polish consumers a horrendous glimpse into life without freedom of press. A well-functioning democracy cannot block opinions that divert from the government line using taxes as a means to achieve its ends. In the last year, Poland has dropped in the World Press Freedom Index, and now it ​ranks as the 62nd freest country in the world. The coronavirus pandemic has been detrimental to the freedom of press in Poland, and the proposed tax will depress it further by pushing independent newspapers, publishers, and broadcasters into extinction.

Consumer choice is pivotal, and depriving consumers of the possibility to choose between different media sources would be a step backwards for Poland, a country whose memory of Soviet totalitarianism is very much alive.

The economic reasoning behind the solidarity levy is weak: the redistribution of funds from private media to healthcare, culture and heritage sector will be more expensive than it might seem. Hundreds of thousands of Poles are employed in the content production field both on a national and local level, and as a result of the tax, they will lose their jobs. The Polish government will then need to take responsibility for this distortion.

More than ​40 statewide and local publishers sent an ​open letter to the Polish authorities arguing against the tax. ​The situation where the state media receive PLN 2 billion annually at the expense of Polish taxpayers, and the private companies are to be charged with an additional PLN 1 billion, they argue, is deeply unfair. Such actions on the side of the Polish government threaten competition in the media market by giving an unfair advantage to the state-funded ones. It should only be up to consumers to decide who takes lead in the market, and who loses.

The solidarity levy on digital advertising pursued by the Polish government is not economically sound and threatens the freedom of press not just in Poland, but in Europe overall. Thirty years ago the Iron Curtain fell sending a promise of freedom and prosperity in Europe, and we need to preserve it. Digital ad taxes is the idea that should have never come to life.

Originally published here.

Cryptocurrency regulations are the wrong way to go

An overly conservative regulatory approach is a danger to the innovative potential of blockchain technology…

Recently, the prices of cryptocurrencies like Bitcoin made new headlines: After reaching a staggering all-time-high, major companies like Tesla have joined the hype, pushing the price ever higher into the sky.

The European Union is in the process of implementing another AMLD, anti-money laundering directive, which puts a larger regulatory burden on crypto-currency providers. The legal and regulatory for the blockchain that the EU is aspiring to could do the same.

In recent months, a plethora of news stories tinted cryptocurrencies in a negative light – from Facebook banning ads for cryptocurrencies and ICOs to China restricting access to foreign crypto exchanges for its citizens and lastly, banks banning cryptocurrency purchases on their credit cards.

It is not news that volatility in the crypto markets exceeds that of traditional stock exchanges by a couple of magnitudes. From late 2013 to early 2015, cryptos underwent a draining bear market that came to an end with exponential price explosions in the following bull market.

Shortly following any crash of cryptocurrencies, some people feel validated to voice their prediction of the end of Bitcoin and cryptocurrencies and call for harsher crackdowns of the technology as a whole. In some, this volatility awakens a deeply-entrenched skepticism of a new technology that’s still in its infancy.

But this overly conservative regulatory approach is a danger to the innovative potential of blockchain technology. Instead of focusing on the volatile nature of the crypto market and equating it with manipulation or dismissing it as a sheer gamble, crypto skeptics should learn more about the transformative nature of the technology behind many cryptocurrencies.

Despite their popular label in the media, many of them are not, in fact, primarily currencies.

The use cases of distributed ledger technology span from delivering aid efficiently to refugees, using blockchain to build a digital identity, enabling scientists to use your safely stored genomic data and a myriad of other fields of application.

Many crypto skeptics refuse to inform themselves on the multitude of use cases of blockchain technology across several industries. Solely focusing on the volatile price does not leave enough room to ponder upon the many ways this newly emergent technology might change our lives in the near future.

During the recent Senate hearing on cryptocurrency regulations, the chairman of the United States Commodity Futures Trading Commission (CFTC) J. Christopher Giancarlo had some encouraging words for the primarily younger generation interested in blockchain technology.

Talking about his niece’s interest in Bitcoin, Giancarlo stressed that any future regulations should not be dismissive, but rather respectful of the younger generation’s fascination with blockchain technology:

“It strikes me that we owe it to this generation to respect their enthusiasm about virtual currencies with a thoughtful and balanced response, not a dismissive one,” said Giancarlo.

Elaborating further, Giancarlo stressed that regulators should have a positive outlook on the future of this technology. While doing so, he seemed quite knowledgeable, even going as far as explaining the meaning of crypto-related terms like ‘HODL’ and ‘kimchi premium’.

For Giancarlo, regulating cryptocurrencies should have the aim of cracking down on fraudsters and fight market manipulation, not to stifle the flourishment of a new technology whose many advantages he acknowledged.

In this way, consumers should be given the opportunity to educate themselves on the different use cases of blockchain technology and have the liberty to invest in projects they deem promising.

Instead of stifling innovation and consumer choice, such a regulatory framework that provides enough space for creative exploration would ensure that future advancements in the cryptosphere are acknowledged as such and gradually find themselves changing traditional banks, corporations, and government operations.

Originally published here.

Article calls for EU to rethink stance on e-cigarettes

recent article for The Parliament Magazine entitled ‘Vaping is the gateway out of smoking’ is calling for policymakers to reconsider their stance on e-cigarettes, as they should be endorsing them as a stop smoking aid in the interest of a smoke-free future.

Why vaping is not a gateway into smoking

E-cigarettes, which have been widely available and popular as a smoking cessation tool since 2013, are seen as a novel technology, and this means they have been met with some suspicion by the EU. The article explains that recent criticism has “sought to frame vaping as a gateway to conventional smoking”.

This has long been proven untrue, and a recent survey by ASH (Action on Smoking and Health) actually reported that only 0.3% of never-smokers are currently e-cigarettes users, which accounts for 2.9% of vapers. Not only is the gateway effect not reflected in data, but numerous studies have concluded the opposite is true, and vaping is a gateway out of smoking.

How can e-cigarettes help smokers quit?

E-cigarettes are targeted at harm reduction, by giving users an alternative nicotine source that does not include all of the other harmful toxins that are found in traditional cigarettes.

The article, co-authored by Consumer Choice Center’s Maria Chaplia and World Vapers’ Alliance’s Director Michael Landl, states;

“The correlation between the introduction and the popularity of vaping and declining smoking rates suggests that vaping is an important innovation to help people quit smoking.”

One of the most important reports on vaping’s potential to save lives is from 2015, commissioned by Public Health England. This report found that e-cigarettes are 95% less harmful that smoking, and the findings in this report have been a big supporting factor in the way in which the UK has embraced e-cigarettes as an invaluable smoking cessation tool.

The article suggests that if the EU continues to demonise vaping, it will negatively affect the chance of smokers making the switch to a ‘safer and healthier alternative’ and suggest that at this point we now know enough about vaping that there is no reason for the EU not to endorse it.

It is clear to see that countries that adopt harm reduction policies, such as endorsing the use of e-cigarettes, see a greater reduction in smoking rates than those who do not. A great example of this is the UK, where health authorities encourage the use of e-cigarettes as a stop smoking aid, and smoking rates are now at an all-time-low. On the other hand in Australia, where vaping has not been well received, rates of smoking have declined at a much slower rate;

“In the UK, approximately 25 percent fewer people smoke today compared to 2013, while the US has seen a 24 percent reduction. For the same period, Australia saw a decline of only 8 percent.”

There is a visible correlation between when e-cigarettes became widely available and popular as a stop smoking aid, and the reduction in smoking rates among the UK adult population.

‘Recent trends framing e-cigarettes as a gateway to smoking do not stand up to scrutiny. E-cigarettes are a gateway out of smoking. Anti-vaping measures are disastrous and detrimental to the health of smokers for whom vaping has become a life-saving tool.’

The article concludes by strongly encouraging policymakers to reconsider their stance on vaping, in line with the overwhelming amount of data that proves it to be an undeniably effective tool to help smokers pursue a healthier lifestyle and reduce their risks of future illness and disease. Ending with the strong and decisive statement;

‘Despite many voices seeking to undermine vaping as a gateway out of smoking, the evidence is sound: vaping saves lives.’

So with mounting calls to re-evaluate their approach to vaping, we can only hope that the EU will help prioritise the health of the public, and encourage adult smokers to pursue a safer alternative to smoking.

Originally published here.

La vape face au tabagisme, une solution que l’UE ne peut plus ignorer?

Ce n’est malheureusement pas nous qu’il faudra convaincre mais bien les institutions de l’Union Européenne. Si la question reste épineuse pour les politiques, un récent article de  » The Parliament Magazine  » a lancé un appel aux décideurs politiques afin qu’ils reconsidèrent leurs positions sur la vape. Et en effet, il serait grand temps d’approuver l’e-cigarette comme une aide dans l’arrêt du tabagisme!

Un monde sans fumée ? C’est un slogan d’avenir que l’on entend de plus en plus dans les pays de l’Union Européenne mais qui n’est malheureusement pas suivi par une politique ambitieuse. Se permettre d’ignorer la vape en 2021 dans la lutte contre le tabagisme revient tout simplement à condamner des milliers de fumeurs dans le monde !

L’e-cigarette largement disponible et popularisée en tant qu’outil de sevrage tabagique depuis 2013, est considérée comme une nouvelle technologie, ce qui signifie qu’elle a suscité quelques soupçons de la part de l’Union Européenne. L’article publié par « The Parliament Magazine » explique que les récentes critiques ont « cherché à présenter le vapotage comme une passerelle vers le tabagisme conventionnel ».

L’article, co-écrit par Maria Chaplia du Consumer Choice Center et Michael Landl, directeur de la World Vapers ’Alliance, déclare :  » La corrélation entre l’introduction, la popularité du vapotage et la baisse des taux de tabagisme suggère que le vapotage est une innovation importante pour aider les gens à arrêter de fumer.  »

Il suggère également que si l’Union Européenne continue de diaboliser le vapotage, cela affectera négativement les chances des fumeurs de passer à une  » alternative plus sûre et plus saine  » et suggère qu’à ce stade, nous en savons maintenant suffisamment sur le vapotage et qu’il n’y a aucune raison pour Union Européenne de ne pas l’approuver.

L’article conclut en encourageant fortement les décideurs à reconsidérer leur position sur le vapotage, conformément à la quantité écrasante de données qui prouve qu’il s’agit d’un outil indéniablement efficace pour aider les fumeurs à adopter un mode de vie plus sain et à réduire leurs risques de maladies et de maladies futures.

Originally published here.

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