Johannesburg – South Africa is considering a new household broadcasting tax and a levy on streaming services to replace the struggling South African Broadcasting Corporation (SABC) television licence system, as the government seeks a sustainable funding model for the public broadcaster.
The Department of Communications and Digital Technologies, working with consultants BMI TechKnowledge (BMIT), has completed a study into alternative funding arrangements and is developing revised proposals for consideration by Parliament.
According to MyBroadband, the department is targeting 31 March 2027 to submit revised funding options to Parliament. The amended SABC Bill, incorporating the new funding framework, is expected to be tabled between April 2027 and March 2028.
The proposed household levy would apply regardless of whether residents consume SABC content, while another option under consideration is imposing levies on local and international streaming services.
The SABC has previously supported a device-independent household levy, arguing that the traditional television licence system no longer reflects how audiences consume content.
‘Terrible idea’
“The current TV licence fee system should be done away with, to be replaced by a device-independent, technology-neutral household levy,” the broadcaster said in its corporate plan.
SABC chief executive Nomsa Chabeli and board chair Khathutshelo Ramukumba have also backed a universal public media levy, with the South African Revenue Service (SARS) potentially responsible for collecting the funds.
However, Communications and Digital Technologies Minister Solly Malatsi has expressed reservations about imposing another tax on households.
Speaking previously about the proposal, Malatsi described a universal household levy as a “terrible idea”, warning that additional taxation could be unpopular given the rising cost of living.
His position reflects concerns previously reported by BusinessTech, which quoted the minister as saying that the proposed broadcasting tax was only one of several options being considered and had not been adopted as government policy.
The funding debate comes as the SABC struggles to collect television licence fees, with payment avoidance reaching 85% in the 2024/25 financial year. According to MyBroadband, the broadcaster lost out on approximately R22.8 billion in potential licence revenue between 2019/20 and 2024/25.
Several options
In February, EWN reported that the department was still consolidating its funding proposals following consultations with stakeholders.
BMIT’s study considered several options, including household fees, individual levies, government grants and alternative collection mechanisms. It also examined commercial revenue sources such as advertising, sponsorships, intellectual property licensing and subscriptions.
Meanwhile, Parliament’s Portfolio Committee on Communications and Digital Technologies has urged the department to accelerate the process, recommending that a sustainable funding framework be finalised and submitted within six months.
The committee said the framework must address both the replacement of the existing television licence collection system and the funding of the SABC’s public service obligations.
The proposed changes could mark the end of the traditional SABC TV licence, although the existing payment requirements remain in force until the necessary legislative changes are approved and implemented.
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Compiled by Betha Madhomu
