The money is used to finance TV and radio channels owned by the state. It's not that strange a concept, although here it is way too expensive and the state owned channels aren't all that great anyway. The problem I have with it is that they call it a licence rather than a tax. Everyone has a TV and regardless of whether or not you watch the channels in question, you have to pay the annual fee, so it's more of a tax.

Two of our ministers recently had to give up their jobs because of not paying the TV licence.