Parliamentary committee states broadband tax is unfair

The proposed broadband tax that is being brought in by the Labour government has caused a lot of controversy since it was announced, and it has now been deemed unfair by a parliamentary committee.

The Labour government announced plans last year to charge a tax on landlines in the UK in order to fund the rollout of next generation broadband. The tax is to be charged on all landlines and will cost fifty pence a month, amounting to six pounds a year for consumers, although some may have to pay more depending on the number of landlines that they have.

Since the broadband tax plans were announced by the government they have been met with fierce controversy, with some people claiming that the way in which the government is planning to raise money for next generation broadband rollout is unfair. It has now been announced that a parliamentary committee has described the broadband tax as unfair.

The claim that the tax is an unfair one has been made by the Business Innovation and Skills Committee. The broadband tax could raise up to one hundred and seventy five million pounds towards the rollout of higher speed broadband, but the committee said that the tax is badly targeted and regressive.

The committee went on to state that many people that would not be able to benefit from the broadband expansion that would come from the tax would still be punished by having to pay a fifty pence tax on their landlines. It added that the government needed to focus more on ensuring that more people had access to broadband rather than focussing on introducing higher speed broadband.

Source – Electric Pig