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Broadband tax 'could multiply'

Posted 27th November 2009 at 12:30pm by Kimberley Howson

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The cost of the new broadband tax could be higher than previously thought

Broadband users may have to pay more through a tax on fixed phone lines than they originally thought, reports have suggested.

While the government's proposed tax was originally set to equate to a rate of 50p a month, it is believed that it will be charged on multiple phone lines and VAT may also be levied.

According to reports, this means a family with a phone line, as well as separate lines for broadband and fax, would have to pay over £20 a year in tax for their service.

Opposition has risen in relation to the plans, with shadow culture secretary Jeremy Hunt claiming that the government is "already looking to triple" the tax.

He added: "How can they possibly square a commitment to universal broadband access if they are massively hiking the prices consumers will have to pay for it?"

At the start of this month, TalkTalk claimed that the introduction of a new broadband tax would mean around 100,000 households would be priced out of having internet access.

More news on: Future developments

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