ANCINE CARRIES OUT A PUBLIC CONSULTATION ON THE LIMIT OF CONTRIBUTION RELATED TO FUNDS RECEIVED UNDER INCENTIVES PROVIDED FOR IN LAW 8,685/93
On April 29, 2020, ANCINE’s Board of Directors decided to establish a Public Consultation on the limit of the contribution related to the funds received under the incentives provided for in Articles 3 and 3-A of Law 8.685/93 (“Audiovisual Law”). The Regulatory Impact Analysis (RIA) produced by ANCINE recommended the increase of the contribution ceiling to R$ 7 million.
Currently, economic agents of the audiovisual sector are allowed to invest in the development and production of Brazilian audiovisual projects respecting the legal limit of R$ 3 million. Although the mechanisms represent one of the most important ways of raising funds for the development of independent productions, the ceiling provided by the law has not been updated since 2006.
According to ANCINE, the possible impacts that led to the recommendation for the limit increase are the confrontation to the problem of real devaluation of this limit; the elimination of the financial bottleneck faced by a growing number of Brazilian audiovisual works; improving the competitiveness of the national product in the market; the exemption of further adjustments in the legal provision for a longer period of time; and the emergency support to the Brazilian audiovisual sector in the context of economic fragility increased by COVID-19.
The Public Consultation shall last 45 days and aims to gather information that will serve, along with the Regulatory Impact Analysis, as a subsidy for the amendment of the audiovisual legislation promoted by the Legislative Branch.