COUNTRY'S SECRETARIES OF CULTURE DEFEND TAXATION ON STREAMING AT 12%
Photo: Marcelo Maximo

The National Forum of State Secretaries and Directors of Culture, which met last week in João Pessoa, Paraíba, released a motion on Friday, the 25th, regarding the regulation of streaming in the country, declaring the urgent need to approve a regulatory framework for the Video on Demand (VOD) market in Brazil. For the Brazilian secretaries of culture, the minimum tax rate on the gross revenue of the platforms (Netflix, Amazon Prime and others) should be 12%.

For the Forum, the audiovisual industry is a strategic industry for development and its future depends on regulation that is not only urgent, but “fair, modern and effective, capable of guaranteeing the Brazilian public access to its own cultural production and ensuring the economic sustainability of the production chain”. The National Forum is chaired by Fabrício Noronha, Secretary of Culture of Espírito Santo.

In addition to the 12% tax, the secretaries ask for guarantees of ownership of intellectual and patrimonial property to independent Brazilian producers, ensuring their economic and creative autonomy and the centrality of regulation in guaranteeing the strengthening of independent Brazilian production.

The position of the Brazilian secretaries of culture follows that of the vast majority of the national audiovisual sector, as already expressed in a document from the Superior Council of Culture and in a manifesto signed by more than 60 artists (filmmakers, producers, actors, technicians). The vast majority of the audiovisual sector supports the Bill proposed by Senator Eduardo Gomes, from Tocantins, with a rapporteur by Congresswoman Jandira Feghali (PCdoB from Rio), which is currently being processed in Congress – there are also two other bills currently being processed that are considered weak by the sector.

Watch the VIII International Seminar Arte!Brasileiros: Counter-hegemonic narratives

Regulation is facing obstacles to materializing in the National Congress, where big tech lobbies have prevailed – Brazil has been trying to determine regulation of the sector for 12 years. Streaming platforms currently operate in a scenario of total asymmetry in the country, taking advantage of the second largest in the world without collecting taxes and fees proportional to their operations in the country. The catalog of Brazilian works on international platforms represents less than 10% of the total. Likewise, the sector also does not distribute copyright royalties in a fair and balanced manner, generating unfair competition and causing a significant loss of revenue for the government, estimated in billions of reais.

For the Marché du Film event, which will take place in Paris, France, from May 13 to 21, with Brazil as the Country of Honor, Brazilian producers, filmmakers and audiovisual professionals will debate issues related to the development of the sector. Heated discussions are expected. At the Marché du Film, the expectation is that the topic of VoD will dominate the debates. Comments on the Producers Under the Spotlight panel already show a strong militancy in favor of urgent regulation. Participants are converging on the idea of ​​demanding a clear position and commitment from the Brazilian government regarding the issue of streaming at this international event. Recently, the Ministry of Culture expressed its support for a minimum rate of 6% for foreign platforms (but, in private meetings with lobbyists, it ended up agreeing on 3%).

The National Forum of Secretaries of Culture decided its position during the 2nd National Meeting of Cultural Managers in João Pessoa. “Without regulation, Brazilian producers have been increasingly relegated to the status of service providers, losing creative and economic protagonism over their works and intellectual and patrimonial property rights. The absence of clear rules deepens a process of deindustrialization of the sector, with direct impacts on the generation of qualified jobs and the country’s cultural sovereignty,” says the Forum document.

“A solid industrial policy requires effective development and planning mechanisms. The Audiovisual Sector Fund (FSA), the main financing instrument for the sector and the basis for partnerships with states and municipalities through regional arrangements, needs to be strengthened — not weakened. We recognize the importance of different development models, but we emphasize that future regulation should not prioritize tax breaks to the detriment of resources allocated to the FSA. It is with robust resources in the fund that it will be possible to plan and implement industrial and federative policies for the Brazilian audiovisual sector.”


Sign up for our newsletter

Leave a comment

Please write a comment
Please write your name