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Business Tax  •  Personal tax  •  Taxation

Government to introduce new ‘broadband tax’

By RJP LLP on 30 September, 2009

Controversial plans to introduce a tax on landlines are set to be become law before the next election, the Government has announced.

 Under the scheme, everyone with a fixed line telephone will pay a levy of 50 pence a month.

 The 'next-generation fund' will generate up to £175 million a year, and will be used to subsidise the cost of making high speed broadband networks available nationally.

 The Government aims to give more than 90% of the country access to next generation broadband, by the year 2017.

 Treasury minister Stephen Timms has confirmed that the tax will be included in the next Finance Bill.

 However, opponents of the scheme have argued that many consumers have already been hit by recent increases in line rental charges, and are calling for the burden of digital investment to be shared between businesses and consumers.

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