Canal+ Threatens to Pull $1.1B Cinema Deal Over French Tax Hike
Key Takeaways
- Canal+ threatens to cancel a €1 billion investment in French cinema.
- The move is a protest against a proposed VAT increase on pay-TV.
- The tax hike would cost Canal+ roughly €200 million annually.
- The French government is seeking to reduce national debt through new tax measures.
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Canal+ Group chairman Maxime Saada has warned that the company may withdraw from its €1 billion investment deal with the French film industry. This threat comes in response to a government proposal to double the VAT on pay-TV subscriptions from 10% to 20%.
Saada argues that the current tax rate is a fundamental condition of their investment contract. If the tax hike proceeds, the company claims the agreement would be void, potentially reducing their annual contribution to French cinema from significant levels to approximately €50 million.
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