Spanish broadcaster’s tax scheme cleared
Tuesday 20 July 2010
The European Commission approved, on 20 July, the Spanish public broadcaster RTVE’s new tax-based funding system. The system is designed to replace income sources for the broadcaster ever since Spain abolished their advertising, teleshopping, merchandising and pay-per-view services. RTVE’s new income will be generated from two new fiscal measures, a 3% revenue tax of free to air commercial broadcasters and a 1.5% tax of pay-TV broadcasters, as well as a 0.9% tax on the revenues of electronic communications operators, and one already existing measure, a share of 80% of the levy on radio spectrum use of up to €330 million. The Commission was investigating whether or not the new taxes complied with EU rules. It concluded that the compatibility of the new aid with state aid laws was not dependent on the legality of the new taxes, which is being separately examined.