New Tax Against TV Stations Airing Soap Operas

New Tax Against TV Stations Airing Soap Operas

New Tax Against TV Stations Airing Soap Operas

In an effort to promote local content, the government has proposed levying a tax  of 50% or even higher on TV networks that broadcast foreign soap operas.

Digital Strategist Dennis Itumbi made a clue about the government’s intentions to  implement a Film Funding model while speaking at the first-ever Kenya film summit, which took place on Friday at Nairobi Cinema.

According to the idea, a significant chunk of the funding will come from local television stations, which will make significant profits from syndicating soap operas from foreign broadcasters at discounted rates.

However, local television stations that air regional soap operas will not be subject to this levy, supporting the government’s goal of fostering the regional film sector.

“The majority of our TV stations air soap operas,  which are exempt from tax. Since they arrive on a flash disk and immediately  begin broadcasting,” the digital  strategist stated at the event.

The government notes that taxing broadcasters who air telenovelas will incentivize  them to concentrate on local production, which will be the main source of funding for films.

Because we have local programs here, why not display them, Dennis Itumbi said.  “So you screen telenovelas you have been escaping from tax for a long time it  will be  fifty-fifty, or even greater than fifty percent.

The first-ever Film sector Summit in Kenya is a specialized venue geared to helping the film  sector reach its full potential.

The government claims that investing in domestic film production will lead to job  creation and promote national growth.Ababu Namwamba, the cabinet secretary for sports, attended the ceremony as the chief guest.

This comes after the government passed the Finance Bill earlier this year, which at first suggested a 15% tax on those who create digital social media content.

The proportion was later changed to 5%, though.