BT to pass on VAT reductions

BT have become one of the first internet service providers to announce that they will be passing on the reduction in VAT announced by the Chancellor of the Exchequer in his pre budget speech to their customers.

These reductions are to take place from today and will see the current rate of 17.5% drop by 2.5% to 15%.

This new figure is set to remain in place for around thirteen months, providing that the situation does not get any worse.

It is believed that now BT has come forward with this, other broadband providers are bound to follow suit and do the same.

It is possible that ISPs may not pass these savings on to customers and they are under no obligation to do so, either it depends on the reaction of their customers or if they decide to go about it in a different way, like offering their customers a sweetener.