Two million homes to have £6 broadband tax tripled, plus VAT
26 November 2009
Nearly two million households will have to pay a controversial new £6 tax on telephone lines up to three times, according to leaked government documents.
Ministers plan to tax the 1.7million households with more than one phone line for each line they rent before then adding VAT to the charge.
The Revenue & Customs plans are intended to fund the introduction of superfast broadband.
Families with one telephone connection, and separate lines for broadband internet and a fax would end up paying £21.15 a year, instead of the originally announced £6, reports The Times.
When the Finance Bill was first announced in June it was assumed each household would be charged an annual £6.
The bill, which is due to be published in early 2010, has been leaked to the Conservatives.
It contains the plans for a 50p a month tax, which ministers hope will raise up to £175million a year to pay for superfast broadband in rural areas.
The leaked document also shows that the Treasury is set to rake in an extra £30million by choosing to charge VAT on top of the new tax.
A spokesman for Carphone Warehouse, the second-largest internet service provider, said that the plans 'add insult to injury for consumers'.
A spokesman told The Times: 'The original 50p a month tax is regressive and unfair. On top of all this now the Treasury will steal yet more off homes in VAT.'
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