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"The licence fees are losing their relevance," Mr Shanmugaratnam said in his Budget speech. "First, ownership of TVs is no longer limited to the middle- and higher-income groups. Today, most households—including 99 per cent of lower-income households—own TVs. Second, with increasing media convergence, Singaporeans can now receive broadcast content over the Internet and mobile devices, which do not attract a licence fee."
The fees were payable by households and non-residential premises such as hotels, offices, food and beverage and retail outlets that have TV or radio sets, and also by vehicle owners for in-vehicle radio sets, as well as dealers who are engaged in the import or sale of any broadcasting apparatus. For residential outlets, the fees were $110 annually for the TV license fee, and $27 for the radio license fee for vehicle owners. The MDA received $132.5 million in radio and TV license fees in 2009, and the abolishment will cost the Government $120 million.
