UK Broadband Tax To Cost Businesses £70m Claim Tories

The Conservative party has slammed the notion of broadband tax by claiming that the tax will take a significant toll over the country’s emerging and small businesses.

The Conservatives are claiming that the Government’s ambitious plans to introduce a levy on all fixed lines would cost UK businesses a whopping £70 million a year, thereby pushing many small-sized businesses into the danger zone.

According to a report from the Times Online, if the proposed tax structure comes into the effect, then as many as 4.8 million businesses across the UK would be required to pay £1,500 a year, the Conservatives claimed.

Citing the same, Jeremy Hunt, the Shadow Culture Secretary, said: “I can't believe the Government is pressing ahead with such a damaging and misguided tax. The fact that SMEs will be forced to pay up to £1,500 each is staggering.”

The UK Government has set up a 12-week long consultation to seek measures that could help in funnelling the £1 billion investment in high-speed broadband in the best possible manner to bump up the country’s communication infrastructure.

As per the plans sketched out in the Digital Britain Report, published in June last year, the Government is planning to raise the investment by charging 50 pence per month on all the fixed telephone lines across the country.

The planned £6 annual levy, better known as “broadband tax”, would be applicable on all the fixed telephone lines across the nation, and would pump up the UK’s communication infrastructure to deliver next-generation high-speed broadband connectivity to 90 percent households.

Our Comments

We think that there might be a mistake somewhere in the way the calculations were made. Times online mentions £1500 per annum, which translates into £125 per month, far above the 50p the UK government will be charging per month.

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