Last Thursday (20), the Chamber of Deputies approved Provisional Measure (MP) 1018/20 that reduces charges on antennas connected to the internet service by satellite, alters rules for the application of Fust resources and taxes on platforms for streaming. After obtaining 302 votes in favor and 59 against, the proposal now goes to the Senate.

The MP's amendments concern the legislation related to the Telecommunications Inspection Fund (Fistel), the Contribution to the Promotion of Public Radio Broadcasting (CFRP) and the Contribution to the Development of the National Film Industry (Condecine).

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Basically, the text equates the rates related to the satellite internet service to the taxes already charged in mobile services telecommunications According to the government, the reduction of these charges should stimulate the increase of these services, which today have 350 thousand points, for 750 thousand stations.

In addition, the Executive Branch believes that matching the rates can lower the price of internet services broadband connection via satellite, in addition to facilitating acquisition by the Brazilian population.

Streaming platforms thank you

Provisional Measure 1018/20 will also impact the Brazilian audiovisual sector. This is because the approved changes exempt streaming platforms from collecting Condecine, a tax levied on the audiovisual sector (cinema, open and closed TVs and “other markets”).

As the newsroom establishes that the offer of video-on-demand services does not fit into “other markets”, in practice, platforms such as Netflix, Amazon Prime Video and Disney +, for example, will not need to collect the contribution.

Streaming platforms
Despite benefiting from streaming platforms, MP is seen as a “bad deal” for the Brazilian audiovisual sector. Photo: Ivan Marc / Shutterstock

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The stretch was criticized by the opposition, since the benefit granted to streaming platforms will decrease the collection of the Audiovisual Sectorial Fund, responsible for promoting numerous projects in the sector.

In a technical note prepared by the Chamber's Budget consultancy, it was estimated that the measure will decrease revenues from the Federal Budget by approximately R $ 46,7 million in 2021, R $ 64 million in 2022 and R $ 90 million in 2023 , “Without due compensation, as determined by the current legislation”.

"This MP became the fiscal stimulus for Netflix and Amazon that do not need to have this type of benefit", contested deputy Erika Kokay (PT-DF). “This project attacks the development of our cinema, in the audiovisual sector”, he added.

Fust changes

Although the measure seeks to optimize broadband internet services via satellite, the text changes several points of the law of the Fund for the Universalization of Telecommunications Services (Fust).

In addition to reducing the collection of Fust by up to 50% by telecommunications operators that execute universalization programs approved by the management council and with their own resources, the MP excludes the requirement that the fund prioritize investments in rural or urban areas that present low Development Indices (HDI).

The changes will still impact the Fust applied to public education. Currently, at least 18% of the fund's total resources are invested in the sector, but the opinion states that there will be only 18% of the resources of the non-reimbursable support modality.

“We are already repeatedly placing the need to expand broadband in the country. The project harms the Audiovisual <strong>postproduction and matching</strong>, as well as harms Brazilian education. This is not acceptable ”, criticized Congresswoman Jandira Feghali (PCdoB-RJ).

Source: Agency Brazil

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