Stars cry blue murder over Italy's porn tax

Italian porn stars were up in arms yesterday over plans by Silvio Berlusconi's government to introduce a tax on their work. The proceeds from the proposed new "porn tax" would go towards paying for working mothers to afford baby-sitters.

The measure - the brainchild of the formerly neo-fascist National Alliance - is due to be voted on in parliament next week. It is contained in the latest draft of Italy's 2006 budget, which emerged from committee late on Wednesday.

The porn tax would take the form of a 20% levy on the selling price or rental cost of pornographic videos and DVDs. A similar surcharge would be placed on payments for pornographic material delivered by television stations or over the internet.

Rocco Siffredi, Italy's most celebrated movie stud, said the government had "picked a fight with sex". He and other pornographic actors have threatened street demonstrations against the tax.

Jessica Rizzo, who helps run one of the Italian sex industry's biggest organisations, said: "This government promised to simplify and reduce taxes. Instead, it has come up with new ones."

The Italian treasury estimates a porn tax could raise around €60m (£40m) next year. Daniela Santanche, the National Alliance MP charged with shepherding the budget through its committee stages, said that would allow the government to offer tax breaks for the cost of hiring baby-sitters. Parents would be allowed to reduce their taxable income by up to €2,150.

The baby-sitting bonus is one of several measures in the draft budget aimed at encouraging Italians to have more children. Italy has one of the world's lowest birth rates, and it is contributing to a growing imbalance between the working and non-working population that threatens its welfare system.

The porn tax won the backing of the cabinet on Wednesday.