French government mulls ending pay-TV tax break

The French government is considering an end to the lower rate of VAT levied on pay-TV channels, according to local press.

Pay-TV companies such as Canal Plus currently pay a 5.5% VAT rate, as opposed to the full rate of 19.6%.

According to La Tribune newspaper, citing government sources, the ministry of finance is considering abolishing the tax break, but has not reached a final decision. The lifting of the VAT rate, which would affect not only Canal Plus and CanalSat but cable operator Numéricable and other triple-play providers, could produce a reported €1bn in revenues to the government.