Thaindian News

New Delhi, Nov 17 (IANS) Countries across the world will find it difficult to give tax incentives, exemptions to various cultural projects given the strained finances some of them have and slowing economic growth, according to a study by Ernst and Young (E&Y;) released at the Forum d’Avignon - 2011.

Forum d’Avignon - 2011 — an event in south-eastern France will provide opportunities for discussions on the worlds of culture, creativity and media from Nov 17-19. About 400 attendees from all continents are expected to share their vision of this personal and collective investment in culture.

“The 2008 financial crisis, the ensuing downturn in the economy and all of the associated impacts on economies are a challenge for all countries, as is the increase of public indebtedness all around the world,” said the report by E&Y; which analysed 18 countries on the tax policies for culture.

“As a direct consequence, the direct public financing of culture through national budget allocation has decreased in 2011 for nine of the surveyed countries as compared to prior years,” said the consulting firm in its report.

Some European countries have been able to maintain low growth rates on public budget for culture (France, Germany). However, the 2011 budgets included significant restrictions for most indebted countries (Greece, Italy).

It is interesting to note that a significant budget increase for culture was enacted in some emerging countries (Turkey, Mexico, China, Russia) but not in all (Brazil, South Africa).

The study also mentions that India had reduced local entertainment tax on cinemas and direct-to-home services in the range of 10-30 percent in 2011 compared to 15-45 percent in 2010.

“Culture is already not a top priority in various countries, and the trend is not expected to change in the coming years. In countries facing great development issues, the financing of culture may be less of a priority, especially should it result in lower tax revenues for the governments,” the survey found.

One good example was the 2010 debate in the US on lowering the ceiling on income tax deductions for charitable donations.

The Forum d’Avignon was created after the ratification of the UNESCO convention on cultural diversity, and since its beginning, has been backed by the French Ministry of Culture and Communication.