France’s Canal+ Threatens to Pull $1.1 Billion Cinema Deal Over French Tax Hike

The suggested change in VAT, which is included in the government’s proposed finance bill, would cost Canal+ Group approximately €200 million per year.

By Elsa Keslassy

Elsa Keslassy

International Correspondent

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Canal+ Group chairman Maxime Saada has warned that the pay TV banner could pull out of its €1 billion ($1.1 billion) investment deal with the French film industry if the government goes ahead with plans to double VAT on pay-TV subscriptions.

The measure, included in the government’s proposed finance bill, would scrap the reduced 10% VAT rate currently applied to subscription-based services and bring it in line with France’s standard 20% rate. Canal+, by far the country’s biggest pay-TV operator and one of the main pillars of French film financing, would be hit hardest, representing a cost of approximately €200 million a year.

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