Satellite dish tax may go but...

The government is still contemplating whether to abolish the annual Lm25 tax imposed on satellite dish owners which may be in violation of EU legislation.

Public pressure, both via the media and directly to the government, for the removal of the levy, which will, of course, mean loss of revenue to the Exchequer, is likely to increase following a decision by Belgium to lift the tax. This decision followed a declaration by the European Commission that such taxes go against EU laws.

The EU Commission ruled that the tax levied on satellite dishes constituted an obstacle to the cross-border reception and distribution of television signals and therefore violates the principle of the free movement of services as laid down in the Treaty.

A spokesman for the Ministry for Competitiveness and Communications told The Times the government is still contemplating whether to remove the tax or not. He said advice from the Attorney General's office was sought and given but he declined to state what it consisted of.

The spokesman would only say that the removal of a tax is normally a Cabinet decision and will not be taken by the ministry on its own. It is estimated that last year the government raised Lm460, 000 from this tax.

Sources close to the Attorney General's office indicated that the real problem was of a financial rather than a legal nature.

Which means the tax as currently levied may be abolished and substituted by an alternative one!