13. 05. 2009

NUNS, NDNV, ANEM, Local Press: ADOPTED AMENDMENTS TO PERSONAL INCOME TAX LAW SEVERELY AGGRAVATE POSITION OF THE MEDIA

Belgrade, May 13, 2009 - The Independent Journalists' Association of Serbia (NUNS), the Independent Journalists' Organisation of Vojvodina (NDNV), the Association of Independent Electronic Media (ANEM) and the Association of Independent Local Media "Local Press", estimate that recently adopted amendments to the Personal Income Tax Law have drastically aggravated the position of the media in Serbia.

The Law Amending the Personal Income Tax Law, adopted by the National Parliament of the Republic of Serbia at the end of April, reduced by half, and in many cases completely revoked, standardized tax-deductible expenses in payment of author's fees to authors and holders of related rights. These changes have especially adverse effect on media outlets, which due to the characteristics of their business activities conclude numerous author contracts. Additionally, these changes will also affect many free lance journalists and other authors and external honorary associates of newspapers, radio and TV stations and independent productions, whose fees are already extremely low, and often arrive late.

It is especially surprising that modifications of the Personal Income Tax Law initiated by the Government of the Republic of Serbia coincide with steps undertaken by the Ministry of Culture of the Republic of Serbia to adopt a package of crisis measures with the aim to help the media sector and alleviate the effects of the global economic crisis. It has become evident once again that the lack of an all-encompassing strategy of development of the media sector leads to partial and contradictory measures which will benefit no one. These measures necessarily result in further loss of confidence in the Government and the sincerity of its intentions to improve the position of the media.

Reduction or complete revocation of standardized expenses in author contracts will not significantly increase the state budget while, on the other side, the significant increase in tax burden will make useless all the measures that have already been undertaken by the media outlets trying to make their business activities more efficient and survive the crisis.

The Independent Journalist' Association of Serbia, the Independent Journalists' Organisation of Vojvodina, the Association of Independent Electronic Media and the Association of  Local Print Media "Local Press" demand the Government of the Republic of Serbia and the National Parliament of Serbia to reconsider the negative effects of these amendments to the Individual Income Tax Law and bring the unbearable and counterproductive expenses related to author's fees – especially in the media field – back to their previous levels.

Independent Journalist' Association of Serbia, Independent Journalists' Organisation of Vojvodina, Association of Independent Electronic Media and Local Press