TV Local Programming Improvement Fund (LPIF)

The Canadian Radio-television and Telecommunications Commission (CRTC) created the Local Programming Improvement Fund (LPIF) to subsidize the production of local TV programming in small communities. The broadcasters are not paying to produce local content and instead are being subsidized by this new LPIF fee. The 1.5% LPIF tax is passed on to TELUS Satellite TV consumers in order to ensure that compliance with new financial requirements does not impact the current and future quality of our products and services.

The LPIF is in addition to existing levies which are already included in your TV bill. Did you know that in total, more than 6% of your total TV bill goes directly to the CRTC or other special funds created by the CRTC? First there is approximately 2 % of your TV bill which goes to the CRTC as licence fees. Then, the CRTC requires an additional 3% of your TV bill to go to independent funds for the creation of Canadian programming. Now there is the new LPIF which adds a 1.5% tax to your TV bill.

  1. What is the purpose of this tax?
  2. Are other cable and satellite TV providers also charging their clients this tax?
  3. Where should I direct my complaints regarding this tax?
  4. Why do I have to pay this tax when the CRTC has indicated that cable and satellite companies should not pass on the tax to their clients?
  5. When will the tax appear on my bill?
  6. How is the LPIF calculated?
  7. Where does the LPIF fee go?
  8. Which of my TV services have the 1.5% LPIF fee?
  9. I contacted the CRTC but they referred me back to my service provider. What should I do now?
  10. Is this the same tax that is going to increase my bill by $10?
  11. What is fee for carriage?
  12. Will I see a charge on my bill for carriage fees?
  13. What is the "Local TV Matters" campaign about?
  14. What is the "Stop the TV Tax" campaign about?

  1. What is the purpose of this tax?

    The Canadian Radio-television and Telecommunications Commission (CRTC) has created the Local Programming Improvement Fund (LPIF) to subsidize the production of local TV programming

  2. Are other cable and satellite TV providers also charging their clients this tax?

    All cable and satellite TV providers are required to pay this tax. Some may have it hidden in the cost of their service. All TV subscribers, regardless of their provider, must pay this tax.

  3. Where should I direct my complaints regarding this tax?

    If you are concerned with the LPIF tax, you should add your voice to the thousands of Canadians who want to stop tv taxes. Visit www.stopthetvtax.ca for information on yet another tax that the CRTC is considering implementing in order to provide more money to large commercial broadcasters like CTV and Global.

  4. Why do I have to pay this tax when the CRTC has indicated that cable and satellite companies should not pass on the tax to their clients?

    As is the case with any new taxes that are implemented by the government such as airline taxes and gas taxes, they are passed on to consumers. If they were not, there could be adverse affects on service delivery or investments in network development. TELUS wants to ensure continued delivery of quality service to you.

  5. When will the tax appear on my bill?

    The 1.5% tax will be displayed as a separate line item for Satellite TV clients after November 16 2009.

  6. How is the LPIF calculated?

    The LPIF fee is 1.5% and the amount you pay will depend on what you subscribe to. As an example a client who has the “Medium Choice” TV package for $61 per month and free receivers would pay 91.5 cents LPIF tax each month. ($61 x 1.5%).

  7. Where does the LPIF fee go?

    All money collected by TELUS to comply with this new tax requirement is provided to the LPIF fund administrators. None of this money is retained by TELUS.

  8. Which of my TV services have the 1.5% LPIF fee?

    This new LPIF tax applies to all broadcasting related services, including the rental of digital boxes, receivers and all programming packages and pay per-view purchases.

  9. I contacted the CRTC but they referred me back to my service provider. What should I do now?

    The CRTC is misdirecting your concerns as a billing issue when in fact the issue is about the policy to implement this tax in the first place. TELUS is working hard on your behalf to reduce current taxes and prevent any new taxes on your TV bill. If you would like to add your voice to the thousands of Canadians who want to stop tv taxes, visit www.stopthetvtax.ca and email in your concerns.

  10. Is this the same tax that is going to increase my bill by $10?

    No, the $5 to $10 charge at the heart of the media campaign right now is yet another tax the CRTC is considering which would be paid over and above the LPIF, known as fee for carriage.

    While the LPIF and fee for carriage tax are not the same, they are obviously related because they are both intended to subsidize local television.

    The additional tax sought by broadcasters which would add an additional $5 to $10 on your TV bill is absolutely unjustified. TELUS is opposing this new tax on your behalf in CRTC hearings which are occurring now.

    TELUS considers that consumers should have a choice in what TV services they choose to support through purchasing. These hearings can be viewed by the public via a webstream made available by CPAC (visit www.cpac.ca). You can join the opposition to this new tax by adding your name to the petition available at www.stopthetvtax.ca.

  11. What is fee for carriage?

    Carriage fees describe the practice of cable and satellite TV providers paying television stations for the retransmission of their signals and programming.

  12. Will I see a charge on my bill for carriage fees?

    No. The implementation of this fee is still under consideration by the CRTC. You will not see charges on your bill for it.

  13. What is the "Local TV Matters" campaign about?

    This is a campaign being run by local television companies seeking incremental revenue. If the new proposed carriage fees are implemented, it could result in an increase of about $5-10 on your bill. TELUS TV is required to distribute all of the free, over-the air local stations in the basic package of all our TV subscribers and we think that payment of carriage fees for these mandatory stations is just another tax.

  14. What is the "Stop the TV Tax" campaign about?

    This is a joint campaign being run by cable and satellite companies (TELUS, Bell, Bell Aliant, Rogers, Cogeco, EastLink) seeking your support to prevent the addition of more TV taxes which would lead to an increase of your bill. Even though the deadline to submit official comments to the CRTC has passed, you can still add your name to the petition and join other Canadians who oppose this tax. For more information please visit www.stopthetvtax.ca.