{"id":815373,"date":"2025-03-05T13:00:00","date_gmt":"2025-03-05T11:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=815373"},"modified":"2025-03-05T12:41:39","modified_gmt":"2025-03-05T10:41:39","slug":"dstv-and-netflix-tax-still-on-the-cards-for-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/technology\/815373\/dstv-and-netflix-tax-still-on-the-cards-for-south-africa\/","title":{"rendered":"DStv and Netflix tax still on the cards for South Africa"},"content":{"rendered":"\n
The government is exploring several alternative funding mechanisms to ensure the South African Broadcasting Corporation’s (SABC) financial sustainability, including a levy on local and international streaming services.<\/p>\n\n\n\n
This was revealed by Communications and Digital Technologies Minister Solly Malatsi in a recent parliamentary Q&A session.<\/p>\n\n\n\n
Malatsi responded to a question from IFP MP Khethamabala Sithole, who asked about potential funding sources for the SABC while legislative reforms to its funding model are still in progress. <\/p>\n\n\n\n
The minister acknowledged that the current TV licence system is failing, citing low compliance rates, high collection costs, and inflation as key issues. <\/p>\n\n\n\n
According to the minister, the potential streaming levy would be automatically collected to modernise funding and improve compliance, potentially stabilising the SABC\u2019s revenue stream.\u00a0<\/p>\n\n\n\n
Malatsi added that households that remain up to date with their TV licence payments would be exempt from paying the levy.<\/p>\n\n\n\n
However, Malatsi admitted that this could lead to increased consumer subscription costs and would require regulatory adjustments. Apart from the streaming levy, Malatsi outlined other funding options that are under consideration.<\/p>\n\n\n\n
One possibility is a household or business levy collected by the South African Revenue Service (SARS) and maintained as an independent SABC fund. <\/p>\n\n\n\n
This method would lower collection costs and ensure stable revenue, but the minister noted that it could also face public resistance as an additional tax. <\/p>\n\n\n\n
Another short-term measure being explored is a conditional grant from the National Treasury, which would provide immediate financial relief.\u00a0<\/p>\n\n\n\n
However, Malatsi again pointed out the negatives and said this strategy is considered unsustainable in the long run.<\/p>\n\n\n\n
Additionally, the SABC has requested that the government reapply for a loan guarantee, supported by its recent unqualified audit outcome\u2014the first since the 2009\/10 financial year. <\/p>\n\n\n\n
The minister said that this would enable the broadcaster to secure an overdraft facility to fund critical infrastructure. <\/p>\n\n\n\n
However, as Malatsi noted, while this approach offers immediate financial flexibility, the SABC would still be responsible for repaying the loan, putting further strain on the broadcaster. <\/p>\n\n\n\n
While these funding models are being investigated, the minister said that he had approved the final terms for a feasibility study to develop a sustainable funding model for the SABC. <\/p>\n\n\n\n
He noted that this study will better assess the broadcaster\u2019s existing revenue streams, explore the new funding options mentioned above, and engage stakeholders to ensure practicality and sustainability.<\/p>\n\n\n\n
Despite the speculation surrounding the proposed streaming levy, Malatsi\u2019s spokesperson, Kwena Moloto, stressed that the department is merely exploring various funding models and has not made any formal proposals. <\/p>\n\n\n\n
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