{"id":722074,"date":"2023-09-29T13:49:46","date_gmt":"2023-09-29T11:49:46","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=722074"},"modified":"2023-09-29T13:49:46","modified_gmt":"2023-09-29T11:49:46","slug":"new-tv-licence-tax-for-south-africa-could-be-coming-soon","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/722074\/new-tv-licence-tax-for-south-africa-could-be-coming-soon\/","title":{"rendered":"New &#8216;TV Licence tax&#8217; for South Africa could be coming soon"},"content":{"rendered":"\n<p>Cabinet has approved a raft of new bills to be submitted to parliament, including the South African Broadcasting Corporation (SABC) Bill of 2023, which aims to overhaul the SABC&#8217;s funding model.<\/p>\n\n\n\n<p>&#8220;Once passed into law, the Bill will result in the repeal of the current Broadcasting Act. The amendments will strengthen the efficiency of the operations of the public broadcaster,&#8221; Cabinet said.<\/p>\n\n\n\n<p>&#8220;The Bill further proposes reforms in the SABC\u2019s funding model and the TV-licensing system.&#8221;<\/p>\n\n\n\n<p>While the full details of the bill and the proposed changes will only be known once tabled, the Department of Communication and Digital Technologies&#8217;\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/07\/49052-31-7-CommDigitalTech-Separate.pdf\" target=\"_blank\"><strong>draft white paper on Audio and Audiovisual Media Services and Online Content Safety<\/strong><\/a> indicated that a new household levy would considered in the bill.<\/p>\n\n\n\n<p>The whitepaper raised concerns over the SABC&#8217;s sustainability while pointing out the need to keep the public broadcaster financed and operational.<\/p>\n\n\n\n<p>&#8220;(The) proposal on the SABC Funding Model is that the TV licence model must be phased out and replaced with a ring-fenced levy, collected by SARS. This proposed funding model is being considered in the SABC Bill,&#8221; the department said.<\/p>\n\n\n\n<p>This comes as the SABC&#8217;s current funding model &#8211; based on the failed TV Licence system and declining ad revenue &#8211; has led to a near-collapse of the broadcaster, necessitating multi-billion-rand bailouts from the state.<\/p>\n\n\n\n<p><a rel=\"noreferrer noopener\" href=\"https:\/\/www.youtube.com\/watch?v=uO-GxBRU7Ug\" target=\"_blank\">Speaking before Parliament\u2019s Communications and Digital Technologies portfolio committee earlier this month<\/a>, SABC Board chair Khathutselo Ramukumba said that the\u00a0<strong>TV Licence evasion rate has jumped to 87%<\/strong>\u00a0in the 2022\/23 financial year, an increase from 82% in the previous year.<\/p>\n\n\n\n<p>Over 9 million South Africans owe upwards of R44 billion in unpaid licence fees &#8211; which the SABC is unlikely to ever see.<\/p>\n\n\n\n<p>Ramukumba said that the organisation recorded a R1.1 billion loss in the financial year ended March 2023, which he blamed on intensified load shedding, further competition from \u201cunregulated\u201d streaming services, the analogue switch-off and a decline in advertising revenue.<\/p>\n\n\n\n<p>He said that the loss is now in line with what the last board started with five years ago, negating the declining losses that the previous board was able to achieve.<\/p>\n\n\n\n<p>\u201cThe projections for the 2022\/2023 financial year were that the SABC would be breaking even with some marginal profit being reported,\u201d he said<\/p>\n\n\n\n<p>\u201cUnfortunately, despite the interventions of our predecessor board and the (R3.2 billion) bailout, that progress that has been made in reducing those losses did not come to fruition.\u201d<\/p>\n\n\n\n<p>He added that the SABC is relying on struggling revenues from its commercial operations to fund its public service obligations, a situation which he said is not sustainable.<\/p>\n\n\n\n<p><strong>Changes incoming<\/strong><\/p>\n\n\n\n<p>The current thinking is to do away with TV Licences entirely and instead replace the failed system with a household levy. This has been the proposal that enjoys the most political support, and has been touted by the ANC and department players since 2020.<\/p>\n\n\n\n<p>Previous proposals for this levy have been that it be technology-neutral and based on a household\u2019s ability to access SABC services. This means households will be charged the TV Licence tax even if they don\u2019t watch the SABC\u2019s content or own a TV.<\/p>\n\n\n\n<p>Other avenues being explored in making the SABC commercially viable is expanding its reach and service offering &#8211; with proposals that it be given a legislative mandate to operate satellite television, radio, and Internet services internationally.<\/p>\n\n\n\n<p>Stakeholders have argued that any financial aid used to fulfil the SABC\u2019s public mandate should be done in a responsible and fair way that does not limit competition with other commercial radio broadcasters.<\/p>\n\n\n\n<p>The department, on the other hand, argued that this does not fit with international best practices, as, for instance, the British Broadcasting Corporation (BBC) has a commercial arm that sells its channels and the OTT platform while also commercialising its content.<\/p>\n\n\n\n<p>The SABC has also entered the OTT space, with it launching its streaming service SABC Plus in November last year.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/technology\/718030\/south-africans-give-tv-licences-the-middle-finger-1\/\">South Africans give TV Licences the middle finger<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cabinet has approved the new SABC Bill to be tabled in parliament, which will lay out the government&#8217;s plans to make the public broadcaster more financially sustainable.<\/p>\n","protected":false},"author":10,"featured_media":209609,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[26],"class_list":["post-722074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/722074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=722074"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/722074\/revisions"}],"predecessor-version":[{"id":722078,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/722074\/revisions\/722078"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/209609"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=722074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=722074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=722074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}