TV Local Programming Improvement Fund (LPIF)
Local Programming Improvement Fund and other regulatory charges on your TV bill
Did you know that today more than 6% of your total TV bill is made up of regulatory fees that TELUS must pay to the Canadian Radio-television and Telecommunications Commission (CRTC) or to special funds created by the CRTC? And now large television networks are lobbying for a new tax on subscribers which could increase the cost of your basic TV services by as much as $6 – 10 per month. CRTC hearings on this matter begin in November, 2009.
Frequently Asked Questions
- How much of my TV bill goes to CRTC in total?
- How does this affect me?
- Why are you telling me this?
- How can I get more information on this?
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How much of my TV bill goes to CRTC in total?
More than 6% of your total TV bill goes directly to the CRTC or other special funds created or sanctioned by the CRTC. First there is close to 2% of your TV bill which goes to the CRTC as licence fees (this amount varies from year to year depending on the CRTC’s proposed budget). Then, the CRTC requires an additional 3% of your TV bill to go to independent production funds for the creation of Canadian programming. Recently, the CRTC created the Local Programming Improvement Fund (LPIF) and introduced a new tax of 1.5% for this new initiative. This new LPIF tax is intended to subsidize the production of local TV programming in small communities.
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How does this affect me?
The regulatory fees noted above are embedded in the cost of your TELUS TV service and are not shown as a separate line item on your bill. We want to ensure that you are aware of how much of your TV bill goes to the CRTC and its funding initiatives. Notifying you of this fact does not impact your bill in anyway.
Regulatory charges apply to all broadcasting related services, including the rental of set-top boxes and all programming packages and Video On Demand or Pay Per View purchases. All money collected by TELUS to comply with these fees and taxes is provided to the CRTC or independent fund administrators. None of this money is retained by TELUS. -
Why are you telling me this?
TELUS is concerned with the recently mandated LPIF tax and, more importantly, with other new taxes currently being contemplated by the CRTC, such as new carriage fees for the major Canadian broadcast networks. TELUS TV is required to distribute a large number of mandatory stations in the basic package of all our TV subscribers and we think that payment of additional carriage fees for these mandatory stations is just another tax. The fees proposed by the major networks could add another $5 - $10 per month to your TV bill every month.
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How can I get more information on this?
For more information on the proposed new taxes being considered by the CRTC, go to stopthetvtax.ca.
A link is provided to contact the CRTC and participate in the proceeding to consider this new tax.
