EC Okays Italian Digital TV Subsidies

LONDON, June 29: The European Commission has ruled that
subsidies of up to 40 million euros granted by the Italian government to
facilitate the transition to digital TV are in compliance with EC Treaty state
aid rules.

The Commission ruled that the tax deductions are technology-neutral
and proportionate to the objective of promoting the transition to digital TV.

Italy grants an income tax deduction to consumers who
purchase television sets with integrated tuner and digital decoders this year.
The income tax reduction is equal to 20 percent of the price paid for the
equipment, up to a maximum deduction of 200 euros per decoder.