April 7, 2010

Government delays broadband tax

by Kay Mitchell

The Treasury has announced today that the proposed broadband tax of 50p per month on telephone landlines will be delayed.

The tax, which was introduced to fund fibre optic cables in rural areas, was set to yield £175 million a year from next year.

Millions of Britons were set to receive “super-fast” broadband as a result of the tax.

However, the Government has delayed plans for the new levy following negotiations to pass budget laws before parliament is dissolved ahead of the May general election.

The Conservative party has already said it would scrap the tax if elected.

Andrew Ferguson, editor of broadband news website ThinkBroadband, said: “Dropping the 50p per month tax will be welcomed by those that thought it was unfair, but it throws the current plan Labour plans to have next generation broadband to 90% of homes by 2017 in disarray.”

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