(WAN/IFEX) – WAN and the World Editors Forum have written to Zoltan Horvath, head of the Office of State Secretaries, to express their serious concern at his ministry’s proposal to increase newspaper contributions to the state Cultural Fund. The Cultural Fund was established in 1993 as a means of providing financial assistance to certain cultural […]
(WAN/IFEX) – WAN and the World Editors Forum have written to Zoltan Horvath, head of the Office of State Secretaries, to express their serious concern at his ministry’s proposal to increase newspaper contributions to the state Cultural Fund.
The Cultural Fund was established in 1993 as a means of providing financial assistance to certain cultural activities, such as book-publishing, film-making and the holding of exhibitions, and is funded by levies imposed on businesses operating within the cultural sector, including newspaper publishers.
WAN and the World Editors Forum are greatly concerned at proposals to double the current “cultural contribution” on net advertising revenue to one percent. The increased rate would be in addition to the existing contribution of one percent of a newspaper’s net copy price. The press is also subject to a twelve percent rate of VAT, a level of taxation that is significantly higher than in many European countries.
The two organisations recalled that increasing the cultural contributions as proposed would cost the newspaper and magazine publishing industry an estimated extra HUF 250 million (approx. US$931,000), at a time when the economy of these enterprises remains fragile and funds are needed for their continued development and economic well-being. Increased costs would either be passed on to readers, which is likely to lead to a fall in circulation and consequent cultural implications, or be absorbed by the publisher, a move which could threaten the very existence of some titles.
Recommended Action
Send appeals to the head of the Office of State Secretaries:
– reminding him that the closure of even one newspaper would have a negative impact on press freedom by reducing plurality of information and the cultural and educational benefits that newspapers bring
– calling on him to reaffirm his government’s recognition of the vital role played by the press in society by maintaining the current rate of cultural contributions and declining to place further financial burdens on the industry
Appeals To
APPEALS TO:The Right Honourable Mr Zoltan Horvath
Head of the Office of State Secretaries
Budapest, Hungary
E-mail: zoltan.horvath@nkom.govPlease copy appeals to WAN.
