The Lagos State Film and Video Censors Board has issued a 5 percent tax levy on several platforms including Netflix and IrokoTV.
This comes despite a June 2020 Federal High Court ruling preventing the Lagos State Film and Video Censors Board from collecting taxes, as the National Film and Video Censors Board was already doing that.
Justice Chuka Obiozorin his ruling said, “I have examined Sections 17, 21 and 25(2) of the National Film and Video Censors Board Act and Sections 23 and 24 of the Cinematograph Law Cap. C8, Laws of Lagos State, and find a case of co-existence of a federal law and a state law on the subject-matter of registration and licensing of premises for film and video exhibition. To that extent, therefore, the federal law prevails, and the law of state must go into abeyance, while the federal law subsists.”
Despite the judgement, the Executive Secretary of the LSFVCB, Bamidele Balogun wrote to the platforms demanding five percent tax.
Balogun issued a letter titled, ‘Implementation of 5% Levy On All Audio and Visual Content On All Physical and Digital Platform’ to the Managing Director of Iroko TV, Jason Njoku, on August 31st.
It read in part, “We hereby request for immediate payment of the five per cent levy on all audio and visual content produced, sold, distributed, marketed, exhibited, streamed, downloaded and shared across all physical and digital platform situate, lying and being within Lagos State.
“A copy of the public notice issued earlier in this regard is herein attached. By this letter, you have been served notice as a necessary procedure and you are obliged to comply within seven days from the date of receipt of this notification.”