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Reports have been flying across the net this week about whether or not the controversial decision to tax broadband users would go ahead or not. UK Cheap Broadband reported on the tax and the entire digital report as news broke, but since then there’s been some debate over just how much of it really has the backing of the government as the general election draws close. Of all the topics covered the new tax has been the most talked about but despite recent rumours that the idea would be completely axed, it seems the government DO intend to introduce the tax.
The tax, which the government prefer to refer to as a ‘levy’ (albeit a compulsory one) would charge landline users £6 a year under the name of the ‘final third’ fund. The money would then go towards the overall aim of Digital Britain – getting every home in the country online with a minimum speed of 2 Mbps by 2012. However, reports began to emerge in national papers that the broadband tax would end up being scrapped until the general election with the possibility of it being removed completely in the event of a Conservative victory. Indeed, the Conservatives have openly condemned the idea many times in the past.
However, despite a risk of backlash close to an election, the government are determined to push the tax through as soon as possible. A spokesman for the Department for Business, Innovation and Skills has told broadband website PC Pro that: “The Government remains committed to the timetable for introducing the 50p levy on fixed lines in 2010”
The spokesman also commented that the comments of the new Communications Minister, Stephen Timms, had been taken out of context by the media.
Overall consumer response to the plans has been poor and many experts have suggested that the money raised won’t be anywhere near enough to make a significant dent in the goal to bring every household within access of a 2 Mbps broadband connection. Even some Labour MPs are worried that pushing the legislation will cause them to lose valuable votes in what is shaping up to be a very close general election.
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