French film industry warns of dramatic impact from proposed VAT hike

Thirteen film industry organizations have petitioned President Emmanuel Macron to oppose a proposed tax increase in the 2027 budget. The measure seeks to raise the VAT rate for linear television from 10% to 20%, a move that could cost the Canal+ group approximately 200 million euros annually.

Industry professionals warn that this fiscal change could have “dramatic consequences” for the French film sector, which generates 7.5 billion euros in turnover and supports roughly 30,000 direct jobs. As the primary private financier of French cinema, Canal+ recently committed to investing 980 million euros in French and European film between 2028 and 2032. Critics argue that the tax hike could undermine this investment capacity and weaken the domestic creative ecosystem in favor of non-European platforms.

In addition to the impact on Canal+, organizations are raising concerns regarding potential funding reductions for France Télévisions and other fiscal imbalances affecting the audiovisual sector.