A controversial new broadband tax to help subsidise the cost of laying down pipes for next-gen surfing speeds could triple from the original amount for nearly two million households, according to a new report.
According to documents seen by The Times, the proposed £6 per year (50p per month) tax on landlines will be levied with VAT for every landline a household uses. This would affect more than 1.7 million households with more than one line, meaning millions could have to pay double or even triple (Up to £21.15) the original amount. A government spokesperson declined to comment, saying “We do not comment on the contents of leaked documents.”
The plans are expected to be published in the Finance Bill next year, and the government hopes it will raise £175m to pay for improved broadband in rural areas. However, the Conservatives have said they plan to scrap the plan if they win the election, which must be held by 3 June next year.
[...] Business Innovation and Skills committee concluded that the broadband tax which could raise up to £175m to introduce faster internet connections would be “regressive” [...]