The United States has expressed concern at the growing trade protectionism of the Sri Lankan government, in the wake of a controversial decision to tax programs imported for the entertainment of minority language speakers of the country.
In terms of total programming hours, English language programs would bear the brunt of the new excise-type tax, followed by Tamil programs imported from India, according to data from AC Nielsen Mediawatch.
In the case of movies, it is Tamil language programming that would pay most of the tax followed by English and Hindi movies.
The United States is the largest buyer of Sri Lankan exports and the trade balance is heavily in Sri Lanka’s favour. Imports of English films, which is one of the few items that Sri Lanka imports from that country would be further discouraged with the proposed imposition of the new tax from April, reported Lank Business Online.
Sri Lanka has also been trying to win concessions to access US markets, including a free trade agreement.
Last year the United States bought Rs199 billion worth of Sri Lankan goods, while Sri Lanka imported only 20 billion worth of US goods according to provisional Central Bank data.
Imports from the United States was about Rs5 billion less in 2005 compared with 2004.
“While we have concerns about the continuing trade imbalance, we are more concerned about the increasing number of trade barriers being erected outside formal trade channels,” says Dean Thompson, Head of Economic and Commercial Affairs at the United States Embassy in Sri Lanka.
“These sorts of para-tariffs impose additional costs and will only serve to reduce the choices of programming available to Sri Lankan consumers. Sri Lanka is a trading nation, and as such, should be looking for ways to increase the free flow of trade; something every reputable study shows will have a positive benefit on the nation’s economy.”
ETV and ART TV, which only broadcast English programs have said they would go out of business if the new tax is imposed, which is more than 100 percent of the value of the royalties paid in some cases.
The government has not specified whether the money raised by taxing Tamil and English language entertainment would be used to develop the almost non-existent domestic Tamil and English television entertainment production, or whether such funds would go to develop the already flourishing Sinhalese tele-drama industry.
Tamil is spoken by the Tamil and Muslim communities of the island; while English is the first language of choice among the Burghers, who are descended from Dutch settlers. Sinhalese is spoken by the majority community of the island. There are no Hindi speakers of the island, but the growing popularity of Hindi movies has prompted many to learn the language.
The government has proposed that imported Tamil, English, Hindi and other movies be charged a special tax at the rate of Rs75,000 per movie, while sitcoms and other serials be charged the same tax per every 5-blocks of half-hour programming hours.
In terms of total programming hours, English language programs would bear the brunt of the new excise-type tax, followed by Tamil programs imported from India, according to data from AC Nielsen Mediawatch.
In the case of movies, it is Tamil language programming that would pay most of the tax followed by English and Hindi movies.
The United States is the largest buyer of Sri Lankan exports and the trade balance is heavily in Sri Lanka’s favour. Imports of English films, which is one of the few items that Sri Lanka imports from that country would be further discouraged with the proposed imposition of the new tax from April, reported Lank Business Online.
Sri Lanka has also been trying to win concessions to access US markets, including a free trade agreement.
Last year the United States bought Rs199 billion worth of Sri Lankan goods, while Sri Lanka imported only 20 billion worth of US goods according to provisional Central Bank data.
Imports from the United States was about Rs5 billion less in 2005 compared with 2004.
“While we have concerns about the continuing trade imbalance, we are more concerned about the increasing number of trade barriers being erected outside formal trade channels,” says Dean Thompson, Head of Economic and Commercial Affairs at the United States Embassy in Sri Lanka.
“These sorts of para-tariffs impose additional costs and will only serve to reduce the choices of programming available to Sri Lankan consumers. Sri Lanka is a trading nation, and as such, should be looking for ways to increase the free flow of trade; something every reputable study shows will have a positive benefit on the nation’s economy.”
ETV and ART TV, which only broadcast English programs have said they would go out of business if the new tax is imposed, which is more than 100 percent of the value of the royalties paid in some cases.
The government has not specified whether the money raised by taxing Tamil and English language entertainment would be used to develop the almost non-existent domestic Tamil and English television entertainment production, or whether such funds would go to develop the already flourishing Sinhalese tele-drama industry.
Tamil is spoken by the Tamil and Muslim communities of the island; while English is the first language of choice among the Burghers, who are descended from Dutch settlers. Sinhalese is spoken by the majority community of the island. There are no Hindi speakers of the island, but the growing popularity of Hindi movies has prompted many to learn the language.
The government has proposed that imported Tamil, English, Hindi and other movies be charged a special tax at the rate of Rs75,000 per movie, while sitcoms and other serials be charged the same tax per every 5-blocks of half-hour programming hours.
