2021-02-17
"Contribution" on Advertising: We Evaluate Another Sectoral Tax
Synthesis:
- The Civil Development Forum took part in "pre-consultations" of the draft law on additional revenues of the National Health Fund, the National Fund for the Protection of Historical Monuments and the creation of a Fund for Support of Culture and National Heritage in the Media Area.
- According to FOR, the work on this project should end at the "pre-consultation" stage, and the sectoral tax on advertising charged on the media should not be subject to further legislative work.
- The proposed "contribution" is yet another sectoral tax that will complicate an already complicated tax system. Instead of introducing more sectoral taxes, the general tax system should be simplified and reformed, and this, rather than creating new "contributions" for the National Health Fund, culture and renovation of historic monuments, should be the priority task of the Ministry of Finance.
- Although we believe that the draft law should not be proceeded with, if it is, its name should be changed e.g. to "law on advertising tax", because the current title is misleading.
- Many of the problems in the area of culture in times of pandemic that the authors of the bill want to solve are already being solved by private sector entities, including private media. No additional funding is needed for this.
- Differing tax rates depending on the type of advertised product is a sign of excessive state paternalism. The authors do not provide any evidence as to why medical products (e.g. condoms or thermometers) or sugary beverages (but not sugary snacks) should be taxed at a higher rate.
- The regulations may violate EU state aid rules and distort competition in the media market by privileging entities favouring one political option.
- There is no justification for "inserting" an amendment into the law which increases the limits of air time allocated for broadcasts and works created in the Polish language from 33% to 49%. The already existing limits in the Act on the National Broadcasting Council should be removed. It is the owners and consumers of media content, not politicians, who should decide what appears in the media.
- Politicians should not create another fund to "support culture and national heritage in the area of media," and additional funds for health care or restoration of historical monuments can be sought by reducing other inefficient state expenditures.
Contact the authors:
Marek Tatała, FOR Vice President
marek.tatala@for.org.pl
Patryk Wachowiec, FOR Legal Analyst
patryk.wachowiec@for.org.pl
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