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UK taxes the internet

by CliveG
7 replies
The UK Government has finally found a way to tax the Internet (but missed the target). This new tax has been on the cards for some time now but the Chancellor of the Exchequer, Alistair Darling, confirmed the introduction of the tax in his pre-budget report last week.

The new tax will be levied at a rate of £0.50 (+VAT) per month on all fixed phone lines. The stated purpose of the tax is to help develop future superfast broadband networks. Mr Darling expects the tax to raise about £175 million per year, thus enabling next generation broadband services to reach 90% of the UK population by the end of 2017.

The Conservatives have vowed to scrap the tax if they win the next election, so it may not be around for too long. However, if they do scrap it, the tax will probably cost more money to implement than it will actually raise.

Oh dear!
#internet #taxes
  • Profile picture of the author skiphop
    What do you mean by "found a way to tax the internet"

    Also, is this bad news? What does it all mean?
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  • Profile picture of the author AdamDev
    It'll be gone by next year then. Between the massive mess Labour have made and the new 'nice house' tax David Cameron may as well order the new furniture for 10 downing street now
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    • Profile picture of the author Alexa Smith
      Banned
      [DELETED]
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      • Profile picture of the author ExRat
        Hi Alexa,

        Proposed taxation is worked out in some detail with the Inland Revenue, Civil Service statistical departments, and so on before being announced, and contrary to what some imagine, these people are actually not stupid enough to propose taxes that cost more to implement than they raise - "surprise surprise".
        I totally disagree. What they plan, and what actually happens after fraud, beaurocracy and reality are applied to their plans are two entirely different things.

        these people are actually not stupid enough to propose taxes that cost more to implement than they raise
        Their stupidity and lack of understanding of reality goes way beyond that example. Most of these people have never had a job in a sector that actually contributes to the GDP. They go straight from uni to pen-pushing to a pension.
        Signature


        Roger Davis
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        • Profile picture of the author rosetrees
          my controversial (?) opinion is that this is a tax on BT's incompetence.

          For as long as I can remember they have had a "can't do, won't do" attitude to anything that involves broadband. We won't supply it in rural areas. We won't supply fast broadband. We won't look into why your broadband only works at 0.5Mb when next door works at 2Mb. Etc, etc, etc.

          Most countries in Europe, including most ex E European block countries, have better, faster, more effective broadband than we have.

          Now, the government has "decided" to charge us all an extra 50p!

          Meanwhile, there are still rural areas with no broadband at all.

          Even mobile coverage is patchy, at least, and non-existent at worst in many rural areas.

          My belief is that mobile bb providers will take over from landline bb.

          Will the Conservatives scrap the plans if they get in? I doubt it. I'm a political cynic, and I rarely see a party overturn policies once they get into office. It's talk.

          /rant
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          • Profile picture of the author Paul Davidson
            I live in the Scottish Borders and am using a mobile internet connection as it is much quicker than the hard wired option from BT.

            As for taxing the internet well, taxing telecom users to help pay for the infrastructure of future improvements on the broadband network is not quite the same thing.

            I will be happy when the infrastructure reaches my house, as using a mobile connection can be a pain at times, even if they do charge everybody else .50p per month to pay for me getting a decent service

            Cheers

            Paul
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