Seven years ago cinema VAT in Sweden was raised from 6 to 25 percent by the then red-green government.

Since then, Swedish cinema visits have decreased considerably. Now the Social Democrats want to lower the VAT that the party themselves helped raise.

- The VAT is a problem for cinemas in our country and the ones that have had to bear the greatest consequence are the smaller cinemas, says Lawen Redar, the Social Democrats' cultural policy spokesperson, to Kulturnyheterna.

Trouble in the film industry

The increase in cinema VAT came as a result of the former film agreement ceasing to apply and the state taking overall responsibility for the national film policy.

The VAT increase was quickly heavily criticized and led to strife in the film industry. Film companies, film festivals and cinema owners argued that it would reduce their revenues. Cinemas in rural areas were worst affected.

- It was necessary at the time, but looking back now, you need to analyze what effects this has had. We have seen a lot of reports which emphasize that this cannot be the primary source of income for Swedish film, but there must be other reasons, says Lawen Redar.

Introduce fees for streaming services

Last autumn, the government announced that a new film policy investigation is underway. In line with that, the Social Democrats want to find other financing alternatives to strengthen Swedish film globally.

For example, by investigating how streaming services can contribute financially to the production of Swedish works.

- We think Sweden is lagging behind in how to finance audiovisual policy. Here you need to review the possibility of fees for streaming services. Denmark is now introducing it at two percent, Finland and Norway are reviewing it. I don't want Sweden to be last, says Lawen Redar, the Social Democrats' cultural policy spokesperson, and continues.

- What Swedish film needs is completely different financing than we have today.

In the clip, you hear Lawen Redar, the Social Democrats' cultural policy spokesperson, tell more about why the organic VAT should be lowered.