Broadband tax comes under fire from MPs

Tuesday, 23 February 2010 02:42

By myfinances.co.uk staff

Government plans to introduce a 50p per month levy on people with fixed telephone lines in order to pay for super-fast broadband has been criticised as unfair by a committee of MPs.

According to the Department for Business, Innovation and Skills (BIS), the levy would be the "best way to drive further investment" in the UK's broadband infrastructure.

The government said it would drive super-fast connections to more remote areas and would help deliver next generation internet to 90 per cent of the country by 2017.

A spokesperson for the BIS said: "The 50p duty we have proposed is modest, fair and affordable and is the best way to drive further investment in our networks."

However, the cross-party Business Innovation and Skills Committee said the proposed tax would place a "disproportionate cost" on people who would be unlikely to "reap the benefits of that charge".

The committee added that while it welcomed the government's commitment to deliver internet speeds of 2Mbps to all by 2012, there needed to be a clearer definition of what it has guaranteed.

As broadband speeds can vary depending on user numbers or distance from an exchange, ministers should pledge to deliver a minimum 2Mbps to all users at all times.

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