Thursday, November 26, 2009

Times claims broadband costs could treble

This morning's Times reports that it has seen a leaked memo which suggests that two million homes will pay more than three times the broadband levy initially proposed.

The plans, drawn up by Revenue & Customs, show that ministers will tax households with more than one phone line — of which there are more than 1.7 million — for each line they rent, and will also levy VAT on the charge.
says the report adding that

Families with one telephone connection, a separate line for broadband and another for a fax would end up paying £21.15 a year, instead of the originally announced £6. The Finance Bill, to be published early next year, will contain the plans for the 50p a month tax, which ministers hope will raise up to £175 million a year to fund superfast broadband connections for rural areas.

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