Russia Proposes Tax on Hollywood and Foreign Films

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The Russian government has proposed slapping a 3 percent tax on all Hollywood and foreign theatrical releases instead of hiking the exhibition license fee, an earlier idea that was widely criticized by local distributors.

Culture minister Vladimir Medinsky, known to be keen to protect homegrown movies against Hollywood competition, announced the initiative at a government meeting devoted to the film industry on Tuesday.

The proposal is to be considered and voted on in early 2018 and its chances of going into law are high as the culture ministry has long been looking for a way to tax foreign releases.

The idea of taxing foreign movies signifies backing down from the previous, more radical proposal to hike the exhibition license fee for all theatrical releases. The fee, which is mandatory for a theatrical release in Russia, was set to skyrocket from 3,500 rubles ($60) to 5 million rubles ($85,000), and producers of local movies would be later reimbursed for the entire amount.
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