MBC: Rs 644 Million Revenue & Still in the Red ?

The Mauritius Broadcasting Corporation (MBC) generated an impressive Rs 644,084,774 in television license fees during the financial year 2022/2023, despite reporting a substantial deficit of Rs 526 million.

This license fee, which amounts to Rs 150 per month for around 350,000 households, is a critical source of funding for the national broadcaster and is essential for its survival.

Despite widespread public discontent and demands for the elimination of this fee, successive governments have remained steadfast in their refusal to abolish it, recognizing its importance as a revenue stream.

In 2022, legislation was even amended to impose stricter penalties on those who fail to pay the license fee.

Non-compliance now carries a hefty fine of Rs 50,000 and could also result in a prison sentence of up to two years.

These provisions were included in the appendix of the budget presented by Minister of Finance Renganaden Padayachy.

This legislative change marked a significant departure from the previous law established in 1985, which imposed negligible penalties ranging from Rs 500 to Rs 1,000 and did not include imprisonment as a possible consequence.

The update was prompted by observations from MBC management, who noted that many hotels and businesses, especially in the Ébène region, were reluctant to pay the fee, resulting in an estimated loss of Rs 50 million for the corporation.

An MBC executive emphasized that the recent amendments were not intended to target individual citizens but rather to hold large corporations accountable.

“These changes were aimed at high-profile companies that make millions in profit yet still refuse to pay the monthly fee of Rs 150,” the executive noted.

In response to the ongoing controversy surrounding the license fee, the coalition of the Labour Party (PTr), the Mauritian Militant Movement (MMM), and the New Democratic Party (ND) has proposed to incorporate the cancellation of the television license fee into their political agenda.

This proposal, initially made by the Labour Party during the 2019 general elections, was not pursued due to their electoral defeat.

The coalition has now committed to implementing this measure should they win the upcoming elections.

Source: Defi Media