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November 27, 2009

Consumers face triple broadband tax

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by David Allen

The rollout of next generation broadband and the government’s pledge to provide all homes in the UK with a broadband service is very commendable, but there is always the question of cost.

Normally a business would fund new technology, as Virgin Media did with its fibre network, but it seems that for the national broadband network, funds will have to be raised from various sources.

One such source of revenue is the Broadband Tax, quoted as being £6 per year, which will be paid by all fixed line phone users.

It now appears that £6 per year is not entirely accurate.

According to the Revenue and Customs, VAT is to be added to the tax and the tax is not per household but per line, and an estimated 1.7 million households will be affected by this.

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