Should satellite dishes be taxed?

We have been reading various reports and letters on whether the Maltese government can keep on requesting owners of satellite dishes and receivers to pay Lm25 annually to be granted a licence to keep this communication device.

Many argue that once Malta joins the European Union next month, the Maltese government will be in breach of the current EU directives on the subject. It was also rumoured that the government is examining some possible changes in the system in order to go around the directives and retain the tax.

I am currently examining this case together with a group of Maltese and foreign experts. We are also holding meetings with a number of key people on the subject. Once we are sure that our case is watertight, we are ready to take the case to the competent authorities in Brussels.

What is for sure is that the European Commission spelt out clearly its position on the issue in a communication issued in July 2001. The communication stresses that certain barriers on satellite dishes and receivers imposed by the governments of member states are incompatible with the free movement of goods and services.

The Commission is particularly adamant against tax obstacles. In fact, the communication states:

"The Commission reiterates its opposition to taxes which are specifically targeted at satellite dishes. It has already expressed its opposition as part of infringement procedures for violation of article 49 of the Treaty (free movement of services); it recalls the case law of the Court of Justice, which has upheld private individuals' right to obtain reimbursement of such taxes from their national courts, subject to the formal and substantive requirements of national law. Moreover, independent of the right to lodge a complaint or obtain a refund, a tax collected in violation of a fundamental freedom under Community law may cause the member state in question to become liable."

The European Commission's position is thus crystal clear.

Moreover, the communication indicates a number of other restrictions that are considered incompatible with the free movement of goods and services. These include technical barriers that hinder the sale and acquisition of these products; administrative obstacles, mainly requests from prior authorisations that make it difficult to install a satellite dish and obstacles to freedom of user choice.

Another controversial issue addressed by the European Commission is that relating to obstacles related to architecture and town-planning. The negative aesthetic impact of satellite dishes should be minimised without impairing the quality of reception. Various solutions are proposed, such as the adoption of a collective dish rather than numerous individual ones.

Internal Market Commissioner Frits Bolkestein went on record saying that the use of satellite dishes should be free from any unjustified obstacle. Private individuals, as the final users of these cross-border satellite services, can cite the free movement of goods and services, fundamental principles which must be directly applied in national law. In addition, the right to receive information via satellite dish is related to the fundamental right to freedom of expression, which is established by the European Convention on Human Rights.

We are aware of our rights and we will let nobody take us for a ride.

Mr Muscat, who holds a Masters Degree in European Studies, is a Labour candidate for the European parliament elections.

www.josephmuscat.com