A new study of the European music market indicates that a significant reduction of the Value Added Tax (VAT), which EU countries append to the price of goods for sale, would go a long way towards reducing the price of CDs and could dramatically expand how much music European consumers purchase. The VAT is unlike the American sales tax in that the rate of the tax varies with the type of item being sold. “VAT on sound recordings is set between 16% and 25% while other cultural products, including magazines and entrance to zoos, starts from 5%.”