With the proposal in the Chamber of Deputies to increase an additional 7 percent tax on streaming platforms, Netflix would raise its prices
In the Chamber of Deputies, the Morena bench proposed once again, to revive the initiative that seeks to collect a tax on foreign streaming platforms such as Netflix, thereby modifying the Law of Special Taxes on Production and Services (IEPS).
This increase would be 7 percent and would apply to the consumption of audiovisual content by foreign companies known as Over to Top (OTT) and which include platforms such as Apple TV, Disney + and the streaming giant Netflix, whose users have increased from of the confinements due to the Covid-19 pandemic.
The reason that the deputies want to implement this tax is that these large platforms usually do not make physical investments in the countries where they operate , what the legislators are looking for is that 40 percent of the proceeds go to social programs in telecommunications in communities natives.
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To all this, if you or any of your relatives is a user of any of these platforms, consider that if the initiative is approved, there would be some changes in the rates of the services , thus, in Netflix, if before you paid 139 pesos in the basic package , with the 7 percent tax you would pay 149.73 pesos.
For the standard package whose current price is 196 pesos, but when applying the tax it would be 209.72 pesos; In the case of the premium package, the tax would increase the price from 266 pesos per month to 284.62 pesos, although the increase appreciation is not much, consider how much it would be at the end of a year .
It should be remembered that as of June 1, 2020, the Value Added Tax (VAT) on digital services came into force , which obliges technology companies to pay their income tax and they have had to register with the Tax Administration Service (SAT).
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With this, the price of streaming services increased the same on a small scale, if the new tax was approved, it would be the second time that the rates would rise on the packages of Netflix and other platforms that have arrived in the country and although the rates rise, the number of users does the same, just last year, Netflix welcomed 37 million.