Cinema federation to challenge VAT hike at Council of State
The Federation of Cinemas of Belgium (FCB) will lodge an appeal with the Council of State against the decision by the federal government to double VAT on cinema tickets. The sector warns that the measure jeopardises its fragile recovery and will inevitably push up prices for filmgoers.
Under the new budget agreement, VAT on cinema tickets will rise from 6 to 12 per cent. According to the FCB, this is yet another setback for cinemas still coping with years of reduced attendance and a limited film supply. "It is a frontal attack on a sector struggling to recover from this period," the federation said last week.
The FCB plans to appeal against the decision at the Council of State, supporting its case by citing similar situations in Spain and Sweden. In those countries, similar VAT increases caused a sharp decline in ticket sales and ultimately reduced tax revenues. Both countries later reversed the increases.
The FCB also takes issue with the government's new definition of an "event", which would allow only cinemas with non-profit status to retain the reduced VAT rate. This, the federation argues, creates unfair competition: the same film could be taxed at 6 per cent in one venue and 12 per cent in another.
The VAT increase will have to be passed on to audiences, and distributors and producers will also see their revenues shrink, the FCB warns. It regrets that it was not consulted beforehand by the government, and asks for the opportunity to work together on a viable alternative.
© BELGA PHOTO DIRK WAEM
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