Greece is planning to levy a 20% extra tax on television advertising, in an attempt to help the nation square its budget deficit.

But a meeting of Europe’s Association of Commercial Television operators (ACT) has urged Greece to re-think its plans. ACT, at its AGM in Brussels on June 8, said it would also be asking the European Commission to investigate and ask whether the extra tax is legitimate under EU law.

Ross Biggam, Director General ACT, said: “Everyone understands that the Greek government has a pressing need to reorganise public finances. But imposing a tax on the revenues of commercial broadcasters will be counter-productive and quite possibly contrary to European law. Greece will be the only country in Europe to have such a tax, and this may well persuade international advertisers to spend their budget elsewhere, as well as dissuading any international broadcasting groups from further investment into the Greek market”.

Christoph Mainusch, CEO Alpha Media Group, stressed: “The tax clearly is a discrimination of television against other media. If this additional tax is imposed, the Greek TV market faces an overall taxation of 64.5% given that we already have a 23% tax on VAT and an additional tax of 21.5% for the advertising business to be paid into the journalist pension funds. Adding the additional 20% would result in a burden on revenues, which is unique in Europe.”



source: rapidtvnews