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The Undoing Tax Abuse Organization (Outa) has requested the television license scrapping, arguing that this financing model for the SABC has failed.
This was part of Outa’s comments on the draft of the Department of Communications and Digital Technologies White Paper on the Policy on Audiovisual and Audiovisual Content Services.
The draft white paper proposed the amendment to television license fees to expand the definition and collection system for television licenses.
The document also proposes changes to strengthen enforcement mechanisms and penalties for non-payment.
These proposals are not surprising considering the decrease in television license fees over the last year.
SABC’s annual report for the 2019/2020 financial year revealed that less than a quarter of television licenses were paid for.
The SABC collected payments of only 2.9 million from the 9.4 million TV license holders in its database, resulting in an estimated revenue shortfall of R2 billion.
Television licensing revenue decreased 18% year-on-year to R791 million, which, according to the broadcaster, was due to the delay in the use of debt collection agencies in this period.
Rather than trying to improve television license collections, Outa said the system should be phased out entirely.
“The incompetence, mismanagement and corruption at the SABC should not become a burden to successful private industries or South Africans,” he said.
“Any tax or levy that does not achieve its purpose due to failed administration or unenforceable mechanisms should be closed.”
He added that the proposed regulations have far-reaching implications for South Africans, including the fact that owning a smartphone or tablet would require them to have a television license.
Outa added that content on on-demand services such as Netflix would be regulated to ensure that South African content has airtime or is blacklisted.
“This is a blatant refutation of freedom of choice, the democratization of information and universal access,” said Outa CEO Julius Kleynhans.
He added that however you look at it, citizens once again have to pay for the incompetence of the government and the failure in the management of state companies such as SABC.
“We fear that this will be another method of getting more money from citizens to finance the corrupt,” Kleynhans said.
SABC business model review
Rather than trying to increase revenue from television licenses, Outa suggests reviewing SABC’s revenue and business model.
This should include a review of current content to help SABC become financially viable as a preferred broadcaster.
The state must also determine how much of the SABC’s funding should come from general levies or taxes, and where oversight will lie.
“The focus should be on providing more internet access and devices at a lower cost to the public, as an enabler for society,” Kleynhans said.
Kleynhans said the minister should consider the broader policy environment and address areas of concern.
“It is not practical to recommend policy changes in one area, essentially plugging a hole, without solving the broader systemic problems,” he said.
OUTA opposed any new source of revenue for the SABC until all the holes are plugged.
“South Africans are tired of state-owned companies not providing services, while taxpayers are expected to pay more and more to stabilize them,” Kleynhans said.
Draft White Paper of the Department of Communications and Digital Technologies on Policy for Audiovisual and Audiovisual Content Services
Outa presentation on the white paper draft
Now Read: Asking Netflix and DStv to Charge TV License Fees is a “Crazy Suggestion”
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