Tories Vow to Cut Broadband Tax

October 22, 2009 Taxation in UK  No comments

The UK Conservative Party has promised to cut the current Government’s proposed £6 annual tax on fixed landlines, if they were to be elected in 2010.

Already using taxation as a fighting point for its election campaign, the UK Conservative Party is extending a promise to cut the proposed 50 pence a month levy on all of the UK’s landlines. The tax, which has come to be dubbed the “broadband tax”, has not yet been instated, but stands as a key point to the “Digital Britain” white paper, published on the 16th of June.

On October 19th, Jeremy Hunt, Shadow Culture Secretary, stated that if the UK Conservative Party were to see success in the upcoming May election, the tax would be cut “as soon as possible”. Alternatives to the tax were not proposed at the time.

The “broadband tax” is scheduled to be passed into law before the election, with the current government already making full acknowledgement that the next government would be in its full power to cut it, if it so chose. The tax, which is estimated to raise £175 million annually, is levied on each copper phone line in the United Kingdom and is aimed at supplementing the funding of infrastructure improvements to the nation’s high-speed internet access, especially in rural areas. Peter Peacock, Highland Labour Minister of Scottish Parliament, has already spoken out against the Conservative’s promise, saying “If the Tories scrap the 50p levy, it would kill off any chance of getting the digital infrastructure that this area needs so badly”.


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