European Broadcasters Question Greek Ad Tax

BRUSSELS: The Association of Commercial Television in Europe (ACT), which represents the interests of the region’s commercial broadcasters, is calling on the Greek government to revisit its decision to impose a 20-percent tax on television advertising.

The trade body, which convened in Brussels for its annual meeting, also wants the European Commission to investigate if the new Greek tax is compatible with EU legislation.

“Everyone understands that the Greek government has a pressing need to reorganize public finances," said Ross Biggam, the director general of ACT. "But imposing a tax on the revenues of commercial broadcasters will be counter-productive and quite possibly contrary to European law. Greece will be the only country in Europe to have such a tax, and this may well persuade international advertisers to spend their budget elsewhere, as well as dissuading any international broadcasting groups from further investment into the Greek market."

Christoph Mainusch, CEO of Alpha Media Group—which operates Greece’s Alpha TV—noted that the tax discriminates against television over other media. He added, "If this additional tax is imposed, the Greek TV market faces an overall taxation of 64.5 percent given that we already have a 23 percent tax on VAT and an additional tax of 21.5 percent for the advertising business to be paid into the journalist pension funds. Adding the additional 20 percent would result in a burden on revenues, which is unique in Europe."

"Above all, the tax will be counter-productive," concluded Spilios Charamis, the director general of Greece’s Antenna Group (and VP of ACT). "Like any business, Greek commercial broadcasters will have to adjust to this unexpected increase in their cost base. There are already indications that investment in original Greek and European programming will be cut in favor of cheaper imported content, which would impact on consumer choice and employment in the Greek and European television sector. For all these reasons, the new tax is a mistake and we call on the Greek government to look for more equitable and less damaging methods of raising revenues."