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French government mulls reversal of pay TV VAT increase

The French government is considering reducing the rate of VAT charged on pay TV services from 7% to the previous rate of 5%, while cancelling its plan to raise the rate to 10% from the beginning of next year, according to Le Figaro newspaper.

According to the paper, the reduction in the VAT rate would benefit Canal Plus, Numericable and beIN Sport but would not apply to other internet service providers that currently pay a higher rate of 19.6%.

According to the report, the move comes after intense lobbying from Canal Plus, which has highlighted its contribution of 6.7% of revenues to the Cosip fund set up to help finance French film production.