Head Tax for National Broadcaster Increased Skip to content

Head Tax for National Broadcaster Increased

The head tax charged for Icelandic national broadcasting service RÚV will be increased while the broadcaster will limit its presence on the advertising market to a significant extent, according to a bill outlined by the government yesterday.

The government parties, the Independence Party and the Social Democrats, are expected to present their bill on RÚV to Iceland’s Althingi parliament today, Morgunbladid reports.

The parliament passed a bill in 2006 including that a head tax would replace the current license fee for RÚV as of January 1, 2009, meaning that a fixed amount will be paid by every tax payer regardless of their salaries and whether they own a television or a radio.

Originally the head tax was an estimated amount of ISK 14,580 (USD 128.44, EUR 99.64) per tax payer per year, but now the proposed amount has risen to almost ISK 18,000 (USD 159, EUR 123).

The bill also includes limitations to RÚV’s presence on the advertising market. If accepted, the national broadcaster will henceforth not be able to interrupt programs to show commercials and a maximum advertising time will be established.

Private television channels have complained about RÚV competing with them on the advertising market.

Click here to read about drastic rationalization measures at RÚV.

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