The Polish government is preparing an “anti-crisis shield” measure that will see providers of on demand services in the country pay 1.5% of their revenues to the Polish Film Institute (PISF).
According to Wirtualne Media, this would result in the PISF receiving around PLN15 million (€3.3 million) this year and a minimum of PLN20 million in subsequent years.
Although small providers of VOD services would be exempt from the payment, no specific criteria have been indicated as to how they would be identified.
Using estimates from the European Audiovisual Observatory from last year, Netflix had revenues of PLN429.31 million and so would have to pay PISF PLN6.44 million. Cyfrowy Polsat’s Ipla would meanwhile have to pay PLN4.03 million on its revenues of PLN268.88 million.
While there is as yet no indication as to when the new tax will come into effect, it has already come in for criticism.
Some believe it will only be fair if it is applied to all providers of VOD service, including foreign-owned companies, while others see it as an opportunistic measure to benefit the PISF.
It is also unclear if the proposed tax would be a temporary measure during the coronavirus pandemic or also applied once it is over.