reports that the Economics and Tax Committee has completed a bill to be submitted to parliament that would lower taxes on e-books and online music from 25% to just 7%.
This would also mean that foreign parties selling e-books or music online to Icelandic consumers would be required to submit 7% of their earnings.
Committee chairman Helgi Hjörvar told reporters, "This means that taxes on new media is lowered, both for reasons of equality and to help encourage the spread of e-books and make them more accessible."
Helgi also said there was cross-partisan support for the bill, with MPs from every party signing onto the bill.
Online music store Gogoyoko celebrated the news, writing on Facebook: "For many years the taxes on CDs have been 7% but on online music, 25%. This has been very unfair, but it will hopefully be corrected now. It is in the best interests of consumers, producers, composers, musicians and salespeople alike."
A final vote on the matter is still pending.
Iceland could be just days away from lowering the taxes on e-books and music sold online.