Netherlands

[NL] Fiscalisation of the Licence Fee

IRIS 1999-10:1/22

Nico van Eijk

Institute for Information Law (IViR), University of Amsterdam

The Dutch Government has sent a proposal to the parliament that would abolish the existing licence fee system. Based on the present Media Act, every holder of a radio and/or television set has to pay a - national, regional and sometimes also a local - licence fee. This fee is used exclusively to finance the public broadcasting system (consisting of national, regional and local broadcasting). The proposed amendment introduces a special tax that will be collected by the ministry of finance. This tax will be at the same level as the existing licence fee. The main reason for introducing the tax instead of the licence fee is to cut the level of costs that are attached to the present system. In fact, the special office ( Dienst omroepbijdragen) that collects the licence fee will disappear.

The positive effect of the increased efficiency could be as high as DFL 60 million (Euro 27.3 million) in the year 2002. Parliament is now looking at the proposal and has put forward a substantial number of questions dealing with issues such as the independence of the public broadcasters, and transitory measures. The government would like to have the new system in place next year.