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Tax credit for advertisers under study to help the media

Posted on Apr 3, 2020, 7:03 p.m.

A tax credit on advertiser spending to support the media sector. This is the proposal of the deputy Aurore Bergé, rapporteur for the audiovisual law, relaying a request from several groups and professional organizations in the media (such as the SNPTV, grouping together the television companies, the Union of brands grouping together the advertisers, etc.) ).

In this period of confinement, the media record a marked drop in advertising, while many businesses are closed and companies tend to “cut” their communication budgets, in a crisis phase. “We are talking about decreases ranging from 70% to 90% of advertising revenues in April for television, radio and the press. And the professionals still fear a collapse in May “, points the member. “It’s a real disaster,” sighs a television specialist, noting that the entire industry is united around such a device.

If the plunge of advertising affects, in fact, the media with full force – several listed groups have already warned of an impact on their accounts -, it has much broader effects: “It will also affect audiovisual and cinematographic creation, the financing of information and diversity, if certain local media do not recover from it”, says Aurore Bergé.

A measure in Italy

Its ambition is therefore to set up a tax credit “Transient” to encourage companies to continue their investments in television, radio, the press or even billboards in the second and third quarter, in exchange for a tax reduction. Only expenses in the French media would be taken into account, to avoid a tax measure benefiting Facebook or Google. “Italy has just implemented measures of this type, underlines Aurore Bergé. Such a tax credit would benefit the economy as a whole and support the recovery. According to a study by Deloitte in 2017, one euro invested in advertising earns 7.85 euros of GDP. So this does not only affect a sector

Not in immediate priorities

For the time being, nothing has been done. “The government is attentive, but nothing is arbitrated”, recognizes the member. ” It’s urgent. If the government decides to take such a measure too late, in the recovery phase, it would lose much of its interest and could even be frowned upon ”, notes a specialist.

However, the proposal does not appear to be among the immediate priorities. The Ministry of Culture indicates that we must first make a “Precise inventory”, that it is more of a “Stimulus only urgent” and that a tax credit “Is not the only answer”.

On the Bercy side, it is specified that the subject is ” looked “ but that “The government’s objective is not to set up specific mechanisms for this or that sector”.

All in “Welcoming the initiative the general rapporteur for the budget, Laurent Saint-Martin, also stresses that the needs of each sector will be analyzed at the end of the crisis, and that there is therefore little chance of such a measure being included in the forthcoming amending finance bill. “It’s a track to dig”, he admits, however.

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