The new universal radio and TV fee in Switzerland 10 October 2014, “Eurovisioni 2014”, Rome

Main features of the new universal fee New law adopted by parliament on 26 September: Introduction of a new universal radio and TV fee, replacing the current reception fee Obligation to pay is not dependent on access to radio and TV reception devices Fee paid by all households and businesses (with some exemptions) Flat rate for households, sliding scale for businesses Purpose: financing of public service radio and TV

Overview of the new radio and TV fee Invoice Households Fee Public service programmes Resident registers Personal data Household data Fee collection agency Businesses Tax admini-stration FTA Invoice Fee Declaration of annual turnover (VAT)

Exemptions from the universal fee Exemptions: households retired or disabled persons on low incomes diplomatic staff transitional provision (for 5 years): exemption on request for households without TV nor radio reception devices (“Opting out”) Exemptions: businesses annual turnover below CHF 500,000 (≈ € 400,000)

Advantages of the new universal fee no problems in defining radio or TV reception devices no obligation to notify for households or businesses controls must not be performed at households and businesses no illicit radio and TV consumption (“fee dodgers”) Universal fee will be lower than current system

Rejected alternatives Financing via federal tax revenue Independence of the public service broadcasters threatened Costs (cantons keep 17% of the proceeds) Financing by increasing the VAT rate Constitutional amendment required Proceeds are dependent on the economic situation Financing on a “pay per view” basis Costly to integrate billing on all reception devices Data protection issues Incentive to avoid public service programmes

Introduction of the new fee Introduction planned for 2018 after enactment of the implementing regulations after appointment of a new fee collection agency by invitation to tender However, delay due to referendum is possible Referendum initiative launched (requires 50,000 signatures within 100 days) If the initiative is successful, referendum will be held in 2015 or 2016