Broadband tax 'could become more expensive'Friday, November 27th 2009 A new broadband tax could cost many households more than the promised 50p a month, it has been suggested. The government's new tax on fixed phone lines could prove more costly to consumers than previous claimed, according to reports.
It has emerged that VAT will be levied on the 50p-a-month rate – referred to as a broadband tax in many quarters – while households with more than one line will face multiple charges.
For example, a family with a single phone connection, a separate broadband line and another for a fax machine would have to pay over £20 a year, which is an increase from the previously quoted figure of £6.
Jeremy Hunt, the shadow culture secretary, said: "This tax hasn't even been implemented, yet they are already looking to triple it.
"How can they possibly square a commitment to universal broadband access if they are massively hiking the prices consumers will have to pay for it?"
Broadband provider TalkTalk also recently criticised the proposed broadband tax, claiming that the rate would mean around 100,000 households would have to give up their internet access.
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