The Dutch CV tax incentive scheme has been extended for one year following intensive lobbying from the local film industry.

Following a special hearing into the issue, a majority in the Dutch parliament is willing to support the tax break for at least a year.

Initiated by D66, one of the Netherland's three governing coalition parties, the move means that Euros 17m will be available for next year. This will be used to give tax write-offs to private investors in Dutch movies.

The announcement follows a large-scale protest in the Dutch film community. During this week's Dutch Film Festival several major players have voiced concerns that the scheme would be scrapped.

Without tax-benefits for investors, the industry fears that big-budget movies, such as The Discovery of Heaven and Phileine Says Sorry, would be impossible to finance in the Netherlands.

Advocates of the tax system argue that it has contributed to a strong performance by local films at the Dutch box office. Cinema-organisation NFC announced this week that the market-share of local films was expected to reach a record-high of 14.5% for 2003.

Governing coalition parties D66 and VVD have also asked the government to investigate long-term solutions for the Dutch Film Industry.