VAT and the consequences at the Movies

The government manages to square the circle, raise taxes, causing a drop in revenue. The Spanish, from September 1, bear the highest tax of 17 European countries whenever they want to go see a movie at the cinema, a concert or a play. This tax goes from 8% to 21%.

The collection will drop in theaters almost 10 million euros with VAT increase , so will force to close to 859 rooms. This means layoffs of more than 3,500 employees. The VAT increase will result in the increase in piracy. This increase in VAT may deal the final blow to this sector that does not go through his prime. As Price Waterhouse conducted a study in the hope that it will help soften this increase, the Ministry of Finance and the Moncloa.

At the beginning is talk of a rise of 8% to 10%, which would have effects much more moderate regarding layoffs and tax collection more beneficial effect. Pedro Almodovar film director, commented that "They will not raise the millions needed to fill gaps that drag brutal. If these measures do not ensure that promise is clear that they are unnecessary and cruel. "

We all hope that the Government to its senses and an increase in VAT from 8 to 10% and to continue supporting the small. The report mentioned above, states that the rise of only 10% of VAT would mean only the destruction of 540 jobs compared to 3,500 employees with 21%. In terms of benefits to the Treasury, would get 1.55 million euros with VAT of 10% compared to the current 8%. With VAT at 21%, calculated that they would stop raising 8.21 million euros.

Piracy is another element that would be very involved in this sector. It would increase significantly because of rising taxes. According to the Observatory on Counterfeiting and Consumer Habits of Digital Content, in Spain, in 2011, amounted to 5.229 million euros, of which 1.402 million relating to films.