Maxime Saada Opposes Canal+ VAT Changes Ahead of 2027 French Budget
France is preparing its 2027 budget with a target to bring the public deficit down from 5.4% to 5% of GDP, putting executive plans on a collision course with pay-television giant Canal+. As part of this revenue search, the government aims to scrap the reduced VAT rate enjoyed by pay television, raising the levy from 10% to 20%. Canal+ Chief Executive Maxime Saada is openly opposing the measure, describing it as political and absurd while warning that the change would impose an extra cost of roughly 200 million euros annually on the group.
Financial Impact on Canal+ Operations and Subscription Pricing
Absorbing a 200 million euro annual hit is mathematically impossible for the broadcaster, according to Saada’s statements on RTL. The chief executive warns that doubling the VAT rate will force the company to rethink its spending entirely. Potential consequences include higher subscription prices for consumers, internal cost-cutting measures, and subsequent job losses across the organization.
French Cinema Funding Faces Cutbacks Over Budget Dispute
Canal+ holds a foundational position in the financing of French cinema, investing 155.6 million euros in French films and funding 148 productions in 2025 alone. The private broadcaster accounts for nearly half of all investments made by traditional private broadcasters in the country. Any reduction in its budget directly threatens domestic production pipelines. Canal+ was previously scheduled to invest 980 million euros in French and European cinema between 2028 and 2032. Saada cautions that if the VAT rate doubles, these commitments will likely shrink, raising the distinct possibility of funding up to three-quarters fewer films.
Frequently Asked Questions About the Canal+ Budget Dispute
What specific change is the French government proposing for pay television?
The executive branch is planning to eliminate the reduced VAT rate for pay television in the 2027 budget, which would double the tax from 10% to 20% in an effort to curb the national deficit.
How much does Canal+ typically invest in French cinema?
The group invested 155.6 million euros in French films and helped fund 148 productions in 2025, representing nearly half of all investments made by traditional private broadcasters in France.