Radio and TV fee for households and businesses to fall from 2021

Voters approved a new levy system at the ballot box in 2015. The Federal Council announced an analysis of the tariff model for the current year. This has now been carried out. The government is responding with a comprehensive package of measures. The changes to the Radio and Television Ordinance will come into force at the beginning of 2021.

It provides for a reduction in the radio and TV fee for households from next year - from the current CHF 365 to CHF 335 per year. Former Media Minister Doris Leuthard had already announced this after the Yes vote on the Radio and TV Act. Specifically, the Federal Council decided at the time that any surplus money would have to lead to a reduction in the fee.

More revenue than planned

This is now the case. The fee will be reduced by CHF 30 for all Swiss private households, as announced by the Federal Council on Thursday. The fee for retirement and nursing homes as well as student residences is now CHF 670 instead of CHF 730. People who receive supplementary benefits to the AHV or IV are still exempt from the tax.

According to the Federal Council, it can lower the tariffs because the number of households subject to the levy has increased more than originally assumed. In addition, fewer households have exempted themselves from the obligation to pay the levy. The Federal Department of the Environment, Transport, Energy and Communications (DETEC) will review the levy rates again in 2022.

Controversial corporate levy

The media levy for companies, which contributes CHF 170 million per year to the fee pot, has also been a bone of contention since the ordinance came into force at the beginning of 2019. Businesses have complained that the levy, which is based on turnover, places a particularly heavy burden on them. Many have high turnover but low margins.

Furthermore, according to the Federal Administrative Court, the current tariff system for companies contradicts the constitution. At the end of last year, the court advised the Federal Council to differentiate the six tariff levels.

18 instead of 6 steps

It has now done so. The tariff structure for the company levy has been refined. Instead of the previous 6, the Federal Council has now defined 18 tariff levels. All companies with an annual turnover of less than CHF 500,000 will continue to be exempt from the levy.

For around 93 percent of companies, the tax bill will fall from 2021. In total, companies will be relieved of 53.3 million francs. This is an important relief in the current difficult times, said Sommaruga.

Not carved in stone

Further changes are not ruled out: Two months ago, the responsible committee of the National Council narrowly decided that SMEs with up to 250 employees should be exempt from the radio and television fee. The parliamentary initiative by Fabio Regazzi (CVP/TI) must next be decided on by the sister committee.

However, it was only in December that the Council of States rejected the idea of exempting companies from the radio and television fee altogether. It spoke out against a parliamentary initiative by National Councillor Gregor Rutz (SVP/ZH). A majority did not consider a new system change to be appropriate. Such a change would unbalance the levy system.

More money for SRG

The Federal Council has also decided to increase the SRG's contribution by CHF 50 million. This will enable it to partially offset the decline in advertising revenue. The SRG's share of the levy will therefore amount to CHF 1.25 billion in future. Politicians from the center and left-wing parties have been calling for an increase in the levy ceiling for some time.

SRG closed the 2019 financial year with a loss of CHF 22.2 million. Falling advertising income, restructuring costs and the capping of the fee share at CHF 1.2 billion weighed on the result. The savings program was expanded in autumn.

Keystone-SDA to receive more support

The national news agency Keystone-SDA is also to receive more support. The federal contribution should now amount to a maximum of CHF 4 million per year instead of CHF 2 million, combined with a clearly defined performance mandate. According to the Federal Council, this should make it possible to react to serious market developments.

Finally, local and regional radio and television broadcasters are also to receive slightly higher support from next year. The levy share will remain at 6 percent. However, due to the slight increase in revenue, the bottom line is that more funds will also be available.

Media package expected

The Federal Council's measures have nothing to do with the coronavirus pandemic. However, the economic consequences of the crisis will make the situation even more difficult for the media. Although the products are being consumed in greater numbers than ever before, increasing subscriptions cannot come close to compensating for the loss of advertising revenue.

However, the Federal Council does not believe in industry-specific emergency measures. Such measures are "not the right remedy", said Media Minister Simonetta Sommaruga last week to the media in the Federal Palace. However, the Federal Council is "very aware that the media are in a structural crisis and that the problems are increasing".

It is therefore planning swift measures to support online media and newspapers. The government intends to submit a package of measures to parliament in the coming weeks. (SDA)