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Mandatory electoral ad time to cost taxpayers nearly $350 million

The Brazilian government will deduct this amount from the taxes to be
Alex Rodrigues reports from Agência Brasil
Published on 24/09/2014 - 18:48
Brasília
Programa de propaganda eleitoral gratuito
© Arquivo Agência Brasil
Programa Eleitoral Gratuito

Broadcasters have gained the right to be compensated for the profits they fail to make from regular advertising during this period Arquivo Agencia Brasil

 

According to Brazilian law, open television channels and radio stations must set aside a determined period of time for airing the proposals of political parties and their candidates. The program, broadcast from August 19 to October 24, is referred to as the mandatory political ad time, and is free of charge—for the parties and their candidates. For taxpayers, on the other hand, it costs millions of dollars.

Nonetheless, broadcasters have gained the right to be compensated for the profits they fail to make from regular advertising during this period—the amount estimated is deducted from the taxes they have to pay. This year alone, the government is predicted to refrain from collecting nearly $350 million, according to Secretariat of the Federal Revenue.

The ad time is described by law as “a right to citizenship”, alongside social funds such as the fund for the Child and the Adolescent, and that of the Elderly, which are to receive in 2014 a total of $158.16 million in exemptions, subsidies, as well as financial benefits.

The amount felt uncollected shows an increase of almost 39 percent from its 2010 counterpart—$251.47 million—a year that also saw general elections. As for 2008, when Brazilian went to the polls to elect their mayors and city councilors, the figure totaled $174.93 million (inflation during these periods not taken into consideration).

In the view of some analysts, the amount paid so that voters learn about candidates and their proposals is not a problem. They believe the problem lies in the fact that the Brazilian society has little access to and control over spending. José Roberto Afonso, a researcher from the Getúlio Vargas Foundation, argues for the importance of making people aware of how much is spent on the ad time. He suggested that public agencies should regularly assess the results achieved.

“Each tax incentive should have the reason behind its creation compared to its outcome. The electoral ad time, broadcast on the radio and television, are not free from a transparent technical assessment,” the economist noted.

In late August, a survey commissioned by the National Transport Federation revealed that only 11.5 percent of the respondents think the electoral ad time holds some influence over their decisions. Another study, this time on voting intentions, released Tuesday (23), reports that 34.4 percent of the people interviewed never watch the electoral ad time, whereas 32 percent watch or listen to it a few times during the week, 18 percent some days, and 15 percent everyday.

The results notwithstanding, Marcelo Costa Souza, the coordinator of the surveys, told Agência Brasil that the free electoral ad time is important, and does affect electors’ decisions. “Especially in the case of voters at first undecided. And it's also a powerful tool for representative democracy,” he remarked.


Translated by Fabrício Ferreira


Fonte: Mandatory electoral ad time to cost taxpayers nearly $350 million