Read on Twitter
When I did the interview with @Shockng I talked about how the tax deductions are a driver of investment in the US independent film industry https://filmtvlaw.com/blog/2018/4/26/the-section-181-film-tax-deduction-is-back
In the UK they have a slightly different system which is a tax credit for all production. https://www.alliotts.com/specialist-teams/media/uk-film-tax-relief-explained/
Basically what that means is that in the US your film has to make 63 cents on the dollar to break even, but you have to have taxable profit elsewhere
In the UK you get cash up to 25% of UK qualifying expenditure. Which is similar to South Korea https://variety.com/2019/artisans/production/south-korea-production-incentives-3-1203123320/
So what all these incentives do is that they reduce the risk associated with making films which broadens the opportunity for people to throw their hat in the ring
Most governments the world over know that films on average lose money so they designed a system where by they lower the return threshold for investors which makes them more likely to invest
In Nigeria what we have done is slightly different, we have given people concessionary loans - which aren't bad but they do not achieve the aim of reducing the risk associated with the project all they do is change the funding mix
What a concessionary loan does is that it increases the returns of the successful projects it doesn't make more projects successful which is what you'd want govt interventions to do
The reason we go the concessionary loan route is because of who tends to be interested in helping the industry - the banks and CBN. They can only support within the remit of their industry tools
The ministry of information and the censors board - our two main regulatory bodies - need to engage with the ministry of finance and firs on these types of packages. That's the real way to unlock investment in the production part of the space
Yes I know this should have been a medium post. The end
