A new ‘broadband tax’ to fund fast internet access will attract VAT and be applied to each phone line, leaving nearly two million households paying up three times the £6 announced by the government.
Plans by Revenue & Customs show that ministers will apply the tax to each phone line rather than per customer — affecting more than 1.7 million homes with more than one phone line — and will also add VAT to the cost.
A document, leaked to the Conservatives and reported in The Times, shows the Treasury stands to gain a further £30 million annual windfall by applying VAT to create a tax upon a tax.
The levy, billed as ‘50p a month’ when it was announced in June, has also widened to include high-speed fibre-optic connections in addition to standard copper lines.
A household with one line for phone calls and another for internet or fax use would pay 50p a month on each line plus VAT, a total of £14.10. Users with three lines, many of whom work from home, would pay £21.15.
The CBI said businesses would need to pay their share of the cost of improvements to Britain’s broadband infrastructure but called on the government to “clarify exactly how the charges will apply to individual businesses with multiple lines.”
Ministers hope the levy will raise up to £175 million a year to fund fast connections for rural areas that currently suffer from sluggish or non-existent broadband access.
A government spokesman told the newspaper: “We do not comment on the contents of leaked documents. It is vital for jobs and growth that Britain has a world-class digital infrastructure. Next-generation broadband brings a range of innovative services and applications with wide business, health and social benefits.
“We want everyone to experience the opportunities that next-generation broadband offers, which is why we plan to introduce a 50p levy on all fixed lines to help the market to access homes and businesses in hard-to-reach areas.”
And as we are going to pay for this, do we get a cut of the profits or a reduction in charges?
Angus
Angus Dei on all and sundry
AnglishLit
Angus Dei-NHS-THE OTHER SIDE
Plans by Revenue & Customs show that ministers will apply the tax to each phone line rather than per customer — affecting more than 1.7 million homes with more than one phone line — and will also add VAT to the cost.
A document, leaked to the Conservatives and reported in The Times, shows the Treasury stands to gain a further £30 million annual windfall by applying VAT to create a tax upon a tax.
The levy, billed as ‘50p a month’ when it was announced in June, has also widened to include high-speed fibre-optic connections in addition to standard copper lines.
A household with one line for phone calls and another for internet or fax use would pay 50p a month on each line plus VAT, a total of £14.10. Users with three lines, many of whom work from home, would pay £21.15.
The CBI said businesses would need to pay their share of the cost of improvements to Britain’s broadband infrastructure but called on the government to “clarify exactly how the charges will apply to individual businesses with multiple lines.”
Ministers hope the levy will raise up to £175 million a year to fund fast connections for rural areas that currently suffer from sluggish or non-existent broadband access.
A government spokesman told the newspaper: “We do not comment on the contents of leaked documents. It is vital for jobs and growth that Britain has a world-class digital infrastructure. Next-generation broadband brings a range of innovative services and applications with wide business, health and social benefits.
“We want everyone to experience the opportunities that next-generation broadband offers, which is why we plan to introduce a 50p levy on all fixed lines to help the market to access homes and businesses in hard-to-reach areas.”
And as we are going to pay for this, do we get a cut of the profits or a reduction in charges?
Angus
Angus Dei on all and sundry
AnglishLit
Angus Dei-NHS-THE OTHER SIDE
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