Croatia

[HR] New Concession Fees

IRIS 2006-5:1/25

Nives Zvonarić

Ministry of Culture, Zagreb, Croatia

Pursuant to Art. 64 para. 5 of the Electronic Media Act, the Council for Electronic Media adopted new Rules on amounts and methods of payment of concession fees for the performing of radio and/or television broadcasting activities and on the amounts and methods of payment of tender documentation and tender fees.

Based on the new Rules, which came into effect as of 21 March 2006, the amount of the annual concession fees have been increased by 30% for the local radio and television broadcasters and by 50% for the national radio and television broadcasters. The novelty of the present rules consists in the stipulation based on which the radio and television broadcasters with a registered office in the areas of the special state concern shall only pay 70% of the concession fee. The concession fees are determined based on the size of the population in the area in which a radio or television programme is broadcast.

The fees shall be paid in four equal instalments in favour of the state budget of the Republic of Croatia. For the purpose of security of the payment of the concession fee the broadcaster shall, at execution of the concession agreement, provide the Council for Electronic Media with a blank bond. In case of failure on part of the broadcaster to make a timely payment of the concession fee, the Council for Electronic Media shall remind in writing the broadcaster of his obligation to make the payment, and determine a new deadline. If the broadcaster fails to make the payment of the concession fee within such new term, the Council for Electronic Media may withdraw the concession for radio and television broadcasting either on a temporary or a permanent basis.

The Rules also provide that in the procedure of granting a concession for the performing of activities of radio and television broadcasting, a fee shall be paid in an amount equal to the percentage of the annual concession fee, namely 5% with the application for the providing of tender documents and 10% for the submitting of tender to take part in the tender procedure.

So far concession fees were paid based on the Rules from 2003 regarding the fee for the provision of telecommunication services and performing of other telecommunication activities and on methods of payment. The amounts of those fees were determined in 1996 and simply adopted by the rules of 2003.