Revenue fears ‘opposition’ to media ‘tax’ – but Minister backs the plan
REVENUE TO COLLECT TV LICENCE FEE
THE Revenue Commissioners warned any attempt to introduce a household levy to replace the TV licence would be seen as a ‘new tax’ and result in water charges-style protests.
RTÉ’s licence fee revenue has plummeted since the controversy over hidden payments to former Late Late Show presenter Ryan Tubridy emerged in the summer, with the station set to lose €21m by the end of this year.
Cabinet sources last month told the Irish Mail on Sunday that keeping the licence fee, with Revenue collecting the levy, is the only ‘politically-palatable’ option for the Coalition as a general election looms.
However, Revenue warned of the ‘serious long-term consequences’ for the Exchequer if
‘A key concern is the political risk’
they were asked to collect any new type of television licence.
According to records released under Freedom of Information, Revenue said it was ‘simply not geared’ towards collection of a small annual fee from a very large tax base. And officials warned there would inevitably be disputes and ‘organised opposition’ was likely.
Linking use of the RTÉ Player with a licence fee was also floated in discussions, which predated payment controversies at RTÉ.
An observations paper from Revenue and the Department of Finance said: ‘A key concern is the political risk of introducing what will be perceived as a new “tax” with the risk of (widespread) opposition.
‘This option envisages quite a different role for Revenue compared with its core remit and Revenue is not geared to this type of operation.’
The paper said there was ‘justification’ for an automatic assumption that every home and business had the capability of receiving broadcasts.
‘It is valid therefore to spread the TV licence charge widely to every home and business which would increase the revenue generated while allowing the rate of charge to be kept as low as possible,’ it said. The paper said 100,000 businesses becoming liable could bring in €16m per year and the two main funding options could bring in between an extra €41m and €47.5m annually. It asked: ‘Is there more that can be done in making payment easier or otherwise incentivising?’
The document also warned that the inclusion of up to 350,000 households not previously paying a licence could pose ‘a significant compliance and enforcement challenge’.
It said a reformed system could be seen as ‘more equitable’ but warned of the ‘key political risk’ around any new levy, particularly during a costof-living crisis.
In an interview yesterday, Arts Minister Catherine Martin said abolishing the licence fee in favour of direct taxpayer funding of RTÉ should be given ‘serious consideration’.