Czech biz still fighting for tax rebate

Proposal stipulated 20% rebate

MOSCOW -- Despite a recent rejection by the Czech Republic's finance ministry of a proposed tax rebate for filmmaking, local providers of film services still hope the initiative will eventually be approved.

"We'll keep negotiating, and I hope that we'll eventually succeed," Ludmila Claussova, director of the Czech Film Commission, told The Hollywood Reporter.

"We'll have to explain again and again to the government that tax incentives need to be created for filmmakers. All over the world governments introduce tax incentives, and why should the Czech Republic be any different?" Claussova said. "We had very positive feedback from the culture ministry and from the ministry of trade and industry, and only the finance ministry said no."

The proposal stipulated a 20% tax rebate on producers' Czech spending. The finance ministry's rationale was that a precedent in which one industry receives such preference should not be created.

Meanwhile, the advocates of the proposal say that the film industry shouldn't be treated like any other one and everyone would benefit from the introduction of tax incentives, which would make the Czech Republic an even more popular place for shooting by foreign crews.