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November 27, 2009

Broadband Tax could be three times as much for some

The broadband tax of 50p per month for those with phone lines that has been proposed by Labour could see some households paying three times this price.

The Broadband Tax works out at £6 per year but a leaked document has suggested that those with more than one telephone line could be charged for each line they have as apposed to it being just a household charge, so those with 2 or 3 lines would end up paying twice or three times as much!

It is estimated that around 1.7 million households in the UK have more than one telephone line, with some having one line for telephone, on for broadband and one for a fax machine, these people could end up paying £21.15 per year as apposed to the £6 according to The Times (who the report was leaked to).
What’s more is that the government are looking to add VAT onto the broadband tax (yes, tax on tax) meaning that it works out at even more than originally expected.

The broadband tax is designed to help raise funds to deliver next generation fibre broadband to hard to reach rural areas, although the Conservatives have vowed to scrap the broadband tax if they get into power in the next General Election and the tax has not gone through.

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