Newspaper companies' associations send an "Open Letter to the Deputies of the Assembly of the Republic"

Media sector business associations explain that proposals for OE do not mean increased spending

The Portuguese Press Association and the Christian Inspired Press Association sent an "Open Letter to the Deputies of the Assembly of the Republic", in which they underline that none of the proposals made to amend the State Budget Law, with an impact on the activity of 600 publishing companies of Newspapers and Magazines they represent, means an “increase of burdens for the State Budget”.

Because, explain the two associations in their open letter, "the legislative amendment to Decree-Law No. 23/2015 is intended to operationalize its implementation", while the "IRS tax benefits will produce an increase in the acquisition of newspapers and magazines and therefore an increase in the associated VAT and corporate income tax”.

On the other hand, API and AIIC clarify, «the incentive to advertising investment by discounting the IRC of small advertisers does not represent any increase either, as it will have an impact on the associated VAT and corporate income tax».

In the letter, the two business associations in the media sector add that «the transfer of funds from the State Budget to reinforce the funds for support to the Media cannot represent any increase either, as they are planned and unspent funds in 2016 and 2017 (which actually add up to 2 million and 400 thousand euros) due to the absence of the operating mechanism that has now been proposed».

"These simple explanations leave no room for doubts about the fairness and adequacy of the proposed amendments submitted, as well as regarding the reduction of VAT on electronic publications by comparing paper publications, according to the Directive recently approved in the European institutions », add the API and the AIIC.

The signatory associations consider “it is imperative not to miss the current opportunity for changes to the State Budget, which aim to improve the sustainability of journalistic companies and encourage the reading of newspapers and magazines by families”.

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