Ministers say that talking the taxing Google could help the BBC

May 6 2009 / By Rob Webber

New proposals currently being discussed by the government would mean that the coffers of the BCC could be boosted by an online advertising tax aimed at Google.

In order to fund the roll-out of broadband and public TV, ministers are looking into the taxing of broadband providers, search engines and download websites.

Firms could be forced to charge for social networking, emailing or internet searches that are used by millions in the UK daily due to what could be tax bills of over £100 million.

The proposals were criticised by Conservative MP Philip Davies, who holds a seat on the Commons culture, media and sports select committees, saying that there was money lying unused in the coffers of the BBC’s that could be used to funding the ‘Digital Britain’ future.

He said ‘they are looking at everything apart from the thing which is shooting them in the eye, which is the BBC. There’s piles of money sat glaring them in the eye. But they are trying everything to avoid doing the most obvious thing of all.’

The use of the BBC’s underspend on the digital switchover towards the broadband industry has already been outlined in plans made by Chancellor Alistair Darling in his budget.

The universal broadband installation will get an estimated £250 million that the BBC is unlikely to have used by 2012, although the option to raise more money from successful internet companies is being discussed by ministers.

A ‘per click’ tax on companies like Google could raise millions of pounds it is believed. Public service broadcasters could, however, receive this money that has supposedly been created for broadband services.

A tax that will be aimed at charging broadband providers based on the amount in megabytes that their customers use is another of the less favourable options currently being discussed. The added expense would be passed on to providers’ customers say critics.

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