At the Rideau Centre in Ottawa today, the federal government announced that it would not impose a levy on MP3 players and smartphones, the so-called "iPod tax."

The announcement followed months of lobbying by the Canadian music industry to extend the levy on blank audio recording media, such as audio cassettes, CDs and MiniDiscs to portable music players.

The music industry had argued that the blank levy was out of date and by extending the tax to digital media players, Canadian artists would "receive fair compensation for the copying and use of their music."

The feds response was that an iPod Tax would send the wrong message on piracy, would drive up the price of the latest products for Canadian consumers, and would tax a device which they said is much more than simply a music player.

"We are here to confirm that the Harper Government will not bring in an iPod tax as part of its copyright legislation." said Industry Minister Tony Clement and James Moore, Minister of Canadian Heritage and Official Languages.

Discuss the decision by the government in Digital Home's Portable Media player forum .