Tax instead of TV subscription. The Norwegian government has come up with a proposal to abolish the TV subscription. It is to be replaced by the "NRK tax". This means that the changes will enter into force on January 1, 2020. Is this a good option for the taxpayer? What does this mean for households in Norway and how will the new tax be calculated?
End of TV subscription
The revolution in the method of financing public media was presented two days ago, i.e. on March 29, 2019. It is worth noting that at the moment public media are supported by radio and television subscription. Citizens pay an annual subscription of just over NOK 3000. However, NRK now wants to introduce a separate tax which will be listed in the annual tax return (Skattemelding). So that everyone has to pay it compulsorily, which means higher profits.
In a special press release, Høyre spokesman Tage Pettersen wrote: “We are eager eliminate the fee as a result subscription service, because it currently does not fit into today's model (…). The current solution does not take into account the economic situation of citizens. Fewer and fewer people pay subscription fees because they watch NRK using a tablet, phone or computer. We need a more modern and fair model of public media financing that takes into account current media access technologies.
The estimated expenses related to the new tax are as follows. Maximum tax will probably be equal to NOK 1700. The specific amount now depends on the individual earnings of each citizen. The payment obligation will apply after the age of 17. This applies to every farm home, regardless of the number of people in the family.
Tax instead of TV license fee. As a result of the changes, the rates are as follows:
150 NOK - 000 NOK;
between 150 and 000 NOK - 200 NOK;
in the range of 200 and 000 NOK - 250 NOK;
in the range of NOK 250 and 000 - NOK 350;
and above the amount of 350 NOK - 000 NOK.
Support for local media?
The authorities will donate the obtained money to support local media. However, private radio and TV stations often do not have a high budget. And they cannot afford to expand their business and invest. They are usually supported by local audiences.
