A TV licence for your smart phone might not be a smart idea

The SABC wants pay-TV service providers, such as MultiChoice (DStv) and video on demand providers, such as Netflix, ShowMax (owned by Multichoice), Amazon Prime, and Apple TV to collect TV licence fees on its behalf.

If you watch programmes on streaming services on your laptop, tablet or smartphone, the SABC wants you to pay.

However, Johan Troskie, an independent tax lawyer, says this way of indirectly taxing people will push tax payers to the brink, where they will decide that enough is enough and simply stop paying altogether, or find ways to pay less.

“Many people already do not pay their television licence fees and fee collection is already bad. In addition, paying tax in South Africa is closely linked to tax morality, where citizens feel that government is not keeping up their side of the silent agreement that they pay tax and get services back and that their tax money is used honestly and fairly.”

Troskie wonders if citizens are not at the stage where they have had enough already. “This is very dangerous for government.

“Every time money is lost through theft and corruption, government seems to turn to the tax payer first. Instead the state should first show us what it is doing about theft and corruption and not only talk about it.”

South Africans are already paying indirect tax when they pay donations tax, estate duty, capital gains tax, dividend tax, emissions tax, sugar tax, property tax, levies on electricity and fuel, car licenses and tax on cigarettes and liquor. Now Aarto is planning to charge R100 to issue a fine and the SABC also wants more license fees.

“Another issue in South Africa is that direct and indirect taxes are already high, much higher than income tax and value added tax. Tax payers are getting so overwhelmed that they will stop paying altogether, especially now with all the corruption around Covid-19.

“We understand that we are in an economic crisis, but it is not only because of the pandemic, but due to misuse of funds and mismanagement,” he says.

Section 27 of the Broadcasting Act states that nobody is allowed to use a television set without being in possession of a television licence issued by the SABC and the prescribed fee is paid. This section is subject to criminal and civil enforcement.

The broadcasting Act defines any device, designed or adapted to receive a broadcast television signal as a television set. That includes a PC fitted with a TV tuner card, or a videocassette recorder (VCR) connected to a monitor or TV screen.

In terms of section 40 of the Broadcasting Act, Act No 4 of 2004, a person who is required to be in possession of a television licence must have one at least of following categories of television licences.

1. A business license – right to use a television set in connection with a business.
2. A dealer licence – the licence holder has the right to use a television set in connection with his or her business as a dealer at a place specified in that licence.
3. A domestic licence – the licence holder is a user of a television set or the owner or occupier of a residential premises.

If you do not pay your television license, you are committing an offence and if you are convicted in a criminal court, you can be fined up to R500 and/or imprisonment of not more than six months.

Civil enforcement happens when your arrears account is handed over to debt collectors to recover the outstanding amount. Late payments incur a penalty of 10% per month to a maximum of 100% per year.

The National Credit Regulator has banned the SABC from listing arrears payments at credit bureaus and contrary to what people are told, the debt does prescribe after three years, just like all other debts.

Other countries, such as the UK, Norway, Germany, Denmark, Finland, Sweden, Australia, Italy, Canada, New Zealand and the US use televisions licences, a public service media tax or other taxes to fund the national broadcaster.

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