Broadband tax criticised by expert

Date: 24th September 2009

The "broadband tax" set to be imposed by the UK government will be unpopular and largely ineffective, an industry website has suggested.
Michael Phillips, product director at Broadbandchoices.co.uk, also said that the levy would "barely make a dent" in the costs of upgrading the nation's broadband networks.

Yesterday, the minister for Digital Britain Stephen Timms said that the tax was likely to be a part of the upcoming Finance Bill, meaning that it could enter UK law before the next general election is called.

Current plans set the levy at 50p a month, or £6 a year, for all people who have a landline phone.

Revenues from the taxation will then be used to help fund the development of high-speed networks to improve the connectivity of Britain's workers and consumers.

Mr Phillips commented: "This is just another body blow to customers that have already seen the majority of telecoms suppliers significantly raise line rental charges this year.

"If you aren't on paperless billing (or 'e-billing') and paying your bills by direct debit, then we would recommend immediately doing this. The savings will - thankfully - more than cover the new broadband tax costs."