VAT hike: Canal+ threatens to cut its support for cinema
As the government drafts its 2027 budget, Canal+ is alarmed at plans to double VAT on pay TV. Boss Maxime Saada threatens to cut film funding, endangering a sector the group still largely bankrolls.
Tensions between Canal+ and the government are escalating as the company opposes plans to eliminate the reduced VAT rate for pay television. Canal+ CEO Maxime Saada dismisses the measure as political and absurd, warning that it would cost the group around 200 million euros annually. Raising VAT from 10% to 20% could result in higher subscription prices, internal cost-cutting, and job losses, says Saada.
The company relies heavily on funding French cinema, investing 155.6 million euros in 2025 for 148 productions, which accounts for nearly half of private broadcaster investments. If VAT is doubled, Canal+ may scale back its commitments, potentially funding three-quarters fewer films. This standoff occurs amid heightened tensions, including a ban on working with individuals who criticized conservative billionaire Vincent Bolloré.
The government's 2027 budget aims to reduce the public deficit from 5.4% to 5% of GDP, with the VAT increase for Canal+ as part of this revenue-gathering effort.
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