Japan may be the home of technology and the source of all of the best inventions of recent years, but the Japanese government is looking to introduce a tax on MP3 players. This tax, if successfully imposed, would see MP3 players and the newly released DVRs increase in price for the gadget hungry nation.

The report was published in Japan’s Asahi Shimbun newspaper. It claims that the Agency for Cultural Affairs in Japan is looking to introduce a tax system whereby MP3 player manufacturers would have to pay a fee, or royalty charge, to the music copyright holders to make up for the deemed loss of profits they would incur as a result of the digital download format.

Although no figures have been decided upon, it is expected that the tax may be as high as several hundred Japanese Yen per MP3 player. This cost would then of course be passed on to the customer.

Japan has taxed other digital recording devices in the past, with cassette players and mini-disc players carrying a tax of several percent since 1993.

The government in Japan attempted to extend the law to cover digital media devices in 2005, but failed.

The Music Business Group in the UK is attempting to do the same thing in the UK by persuading the British government. If Japan is successful, the MBG will gain encouragement for their proposals.