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NEWS ROUNDUP

ITA Supports Recast Tax Proposalnal Telecard Association here is endorsing a modified version of the proposed tax law affecting prepaid phone cards.The proposal would clarify the application of the Federal Excise Tax on communications as part of the Budget Reconciliation Act.Section 1045 of the House bill, with identical language in the Senate version, would clarify the liability of phone-card issuers

ITA Supports Recast Tax Proposal

nal Telecard Association here is endorsing a modified version of the proposed tax law affecting prepaid phone cards.

The proposal would clarify the application of the Federal Excise Tax on communications as part of the Budget Reconciliation Act.

Section 1045 of the House bill, with identical language in the Senate version, would clarify the liability of phone-card issuers to collect the 3% Federal Excise Tax on communications from those to whom it sells prepaid telecommunications services (phone cards).

The ITA supports a slightly different version of the proposal that would extend the effective date of the new FET provision to Jan. 1, 1998 and make it clear that the tax is due only to communications providers and not distributors, retailers or providers of bulk long distance service. It would require phone-card issuers to pay the 3% tax on income they received for prepaid telephone service.

Fuji to Merge Photofinishing Labs

ELMSFORD, N.Y. -- Fuji Photo Film USA here will merge its wholesale photo finishing operations based here, Fuji TruColor and Fujicolor Processing into a single company, Fujicolor Processing effective this month. A subsidiary of Fuji Photo Film USA, Fujicolor Processing will provide photofinishing through a network of labs across the country servicing mass-market retailers.

The move is being made for better operational efficiency, according to Osamu Inoue, who will become president of the new company and also is president of Fuji Photo Film U.S.A.

American Greetings to Sell Units

CLEVELAND -- American Greetings here signed a letter of agreement to sell two of its subsidiaries, Acme Frame Products and Wilhold to Newell Co., Freeport, Ill., for an undisclosed price. According to Morry Weiss, chairman and chief executive officer of the greeting card company, the decision to divest the two business units was made because earnings "did not reach the critical mass necessary to be a meaningful contributor. Both Acme Frame Products and Wilhold are strong and profitable companies, however, neither fit our strategic goals."