Less than a fifth of viewers are paying their SABC TV licence. In the 2021/22 financial year, the SABC could only collect just above 18% of fees, leaving the organisation with a shortfall of over R3.6bn. The Department of Communications and Digital Technologies (DCDT) has now tabled a draft white paper to help the public broadcaster better fulfil its mandate.
The draft paper proposes a comprehensive overhaul of the SABC’s funding model based on international best practices. One of the proposals, suggested by satellite television provider MultiChoice, is a funding model that will phase out TV licences and introduce a ring-fenced public broadcasting service (PBS) levy.
This levy will be collected by the revenue service (SARS). The DCDT believes that the proposed amendments will improve the collection system for TV licences and strengthen enforcement mechanisms and penalties for non-payment.
The white paper also provides for the SABC to have a legislative mandate to operate international satellite television, radio, and internet or online services. This will force over-the-top (offerings to users over the internet without traditional cable or satellite TV) and on-demand service providers to register for licences. Streaming services such as Netflix, Amazon Prime Video, and Disney+ will only be able to operate in South Africa if they have applied for a licence to do so.
“The SABC cannot collect TV licences and is now seeking assistance from SARS,” says Chloe Castle, DearSA CEO. “South Africans are already carrying a very heavy tax burden – from income tax, VAT and fuels levies to pay-as-you-earn (PAYE) and customs duties.
“We pay for subscription services (plus VAT), and the data or internet service (plus VAT), as well as buy the devices on which to view the content (purchase price plus VAT). In addition, private content providers are also taxed on income received.
“The question is, what is the SABC contributing to the media supply chain and how will they improve this through additional fund collection? If the value add was already present, why are private content streamers outgrowing the local broadcasting services?”
The public has until 8 September 2023 to comment on the draft paper. DearSA, as a conduit to the Government during public participation, invites you to have your say on its website.