Amid ongoing discussions about cuts to the Swiss Television Licence Fee (Serafe), the Social Democratic Party (SP) has submitted a proposal which would scrap the charge entirely. As part of the plan, everyone in Switzerland would pay for the public media via higher taxes.

The Swiss TV licence fee explained

Currently, every household in Switzerland is obliged to pay an annual licence fee of 335 francs, regardless of which TV or radio stations they listen to. Beyond people claiming pensions or disability insurance, those who don’t want to pay the fee have to prove they have no way to receive radio or TV broadcasts - this means you have to prove you don’t have a radio, television, computer, tablet, smartphone or car radio.

The fee is designed to support TV and radio broadcasts by the national broadcaster SRF SSR and media reporting from various local providers across the cantons. 88 percent of licence income is sent directly to SRG SSR to produce Swiss-made news and entertainment, 6 percent is sent to private broadcasters, and another 6 percent is used for technological development and paying for Serafe - the organisation responsible for collecting the licence fee.

SVP referendum calls for budget cuts for SRG SSR

However, many have called for the TV licence fee to be cut, most notably via the “200 francs are enough!" SRG Initiative submitted by the Swiss People’s Party (SVP). As the name suggests, under the referendum the licence fee would be cut to 200 francs a year, which would cut the budget of the national broadcaster by up to 40 percent. 

In response, the Federal Council confirmed in June that to “relieve the financial burden on households”, they would move to cut the fee to 312 francs a year from 2027 and to 300 francs from 2029. They argued that it was a compromise between the rising cost of living and the financial health of the media landscape in Switzerland. This counter-proposal is now being debated in parliament.

How would getting rid of the licence fee work in Switzerland?

Now, the Social Democratic Party has submitted a proposal that would completely scrap the TV licence fee in Switzerland. National Councillor Jon Pult proposed that media organisations be funded by an increase in value-added tax, taking inspiration from France which abolished its licence fee in 2022.  

Speaking to La Liberté, Pult admitted that having Serafe as a separate but practically mandatory fee means it has an “acceptance problem” among the public, adding that young people are often taken aback by the fact that they have to pay to use household items. He estimated that VAT would have to be raised by between 0,3 and 0,4 percent to support the media.

Pult argued that Serafe as it is currently constructed is simply a flat fee on rental costs, with rich and poor having to pay the same amount. As VAT is a tax on purchased goods, he concluded that it would mean that higher earners would pay more for the service than those with lower salaries.

The SP’s proposal has received some support, with the Green Party telling 20 Minuten that it would be a good way of lowering costs for low-income households. The Green Liberal Party also signalled that it wanted to explore other ways to fund the media beyond Serafe.

Media cuts should be rejected rather than accommodated, opponents argue

On the other side of the aisle, Centre National Councillor Martin Candinas argued that the SVP's “dangerous” plans to cut the licence fee should be vehemently rejected rather than compromised with. The FDP’s Andri Silberschmidt said they were “fundamentally opposed” to any rises in VAT, arguing it would hurt household purchasing power.

The SVP also isn’t keen, with National Councillor Gregor Rutz calling VAT “the most antisocial tax there is”, arguing that it hurts lower earners who cannot afford to pay more for necessities. In response to Pult’s “acceptance problem” comment, he concluded that "the fact that the Serafe fee is unpopular is not just due to the fee, but also to what you get for it" - an allusion to the SVP’s complaint that the SRG has a bias and lacks a mandate or direction.