Tax issues relating specifically to pay television weren?t discussed during last week?s meetings of Anatel, congressmen and some state finance departments with representatives of the telecommunications industry. ABTA took part in the meetings only as an observer, but the association has a strategy for reducing the tax burden.
The idea is that DTH and cable operators shouldn?t be classified as telecoms services, as they are in the current legislation. This is ?imprecise terminology?, ABTA argues, since in fact they?re merely content distributors. In the case of cable, the law allows operators to lease out infrastructure to telecoms providers. DTH operators don?t own the infrastructure they use: indeed, they lease channels from satellite owners.
For MMDS it?s more complicated to find a solution, since operators are granted use of frequencies as part of their license and classification as a telecoms service may be unavoidable.