Plans to increase television licence

THE cost of a television licence looks set to rise next year to compensate for the scrapping of advertising on public channels.

Culture Minister Frédéric Mitterrand said a rise in the €121-a-year tax was "not shocking".

Speaking at a lunch with journalists yesterday, he said: "We will need to find ways of making up for the loss of revenue.

"Until now it has always been said that the State would top it up, but the general situation that public finances are in make this more difficult."

Advertising on public channels France 2, France 3, France 4 and France 5 was abolished in Nicolas Sarkozy's 2008 broadcasting law.

Since January 2009, there have been no ads between 20.00 and 6.00 and they will disappear from other times of the day by the end of 2011.

The loss in revenue has been made up partly by a 0.9% tax on telecom companies' turnover, but the European Commission has launched an investigation into the legality of this.

The TV licence (redevance audiovisuelle) is paid with the taxe d'habitation each year. See our residential taxes helpguide for more information.