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TV licence alert: France set to scrap telly tax – should the UK do the identical? | Personal Finance | Finance

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Last week (August 2), the French Senate agreed to finish the country’s television licence fee after a heated debate. Just like the UK’s TV licence which pays for the BBC, France’s equivalent television tax is used to fund public broadcasting. As an alternative of a licence fee, the French Government plans to fund its public broadcasters through VAT revenues.

Nonetheless, France’s Senate also adopted an amendment that this funding will only last until December 31, 2024.

France’s decision to scrap the tax could incentivise the UK Government to make an analogous decision, nonetheless the identical funding issues will likely arise.

The UK’s licence fee is undergoing a two-year freeze because the Government explores alternative funding options for the BBC.

The tv licence is required to observe or stream programming content because it is being broadcast live within the UK.

READ MORE: State pension set to rise next 12 months but 520,000 people will miss out

Because it stands, around 27 million homes in France must pay €138 a 12 months towards the TV licence.

That is around £115 a 12 months which is lower than what Britons must pay annually towards their licence fee.

Following the tax freeze, households within the UK must pay £159 every 12 months but how long this levy will likely be in place stays to be seen.

Culture Secretary Nadine Dorries has confirmed the country’s current licence agreement with the BBC will come to an end in 2027.

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On the tax freeze, Ms Dorries said: “The BBC is a terrific national institution with a singular place in our cultural heritage.

“It broadcasts British values and identities all around the world and reaches tons of of hundreds of thousands of individuals on daily basis.

“But at a time when families are facing a pointy increase of their living costs we simply couldn’t justify asking hard-working households to pay much more for his or her TV licence.

“This can be a fair settlement for the BBC and for licence fee payers. The BBC must support people at a time when their funds are strained, make savings and efficiencies, and use the billions in public funding it receives to deliver for viewers, listeners and users.”

READ MORE: Britons in higher bracket can do 2 most important things to cut back tax payments

Ms Truss said: “What I’m very concerned about on the TV licence fee is what number of women have ended up in prison for non-payment, a disproportionate number.”

It must be noted that it will not be possible to be sent to prison for not paying the tv licence fee.

People only face this consequence in the event that they fail to pay a court-imposed high-quality in reference to a conviction for not paying the tax.

Rishi Sunak can be reportedly open to scrapping the tv licence fee if he were to get the keys to Number 10.

A call over the long run of BBC funding will likely be made after the tip of the two-year TV licence freeze.

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