A government committee in Japan has rejected a proposal to tax iPods.

NEW YORK (CNNMoney.com) - A plan for an iPod tax in Japan fell apart Thursday, according to a published report.

The New York Times said a government committee was unable to reach an agreement on a plan to charge royalties on the portable digital music players.

Japan's recording industry began lobbying about two years ago for a tax that would add 2 to 5 percent to the price of the music players, according to the report.

A government committee has been debating the issue for about a year, but it had to reject the proposal since it was unable to reach a consensus.

Committees that help set government policy in Japan tend to be filled with industry insiders who work for corporate interests, the newspaper said.

But due to strong public opposition to the iPod measure, the agency in charge for selecting the members of the government committee decided to choose academics, copyright lawyers and other experts rather than music industry executives, the Times reported.

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