Conservative would scrap broadband tax
In order to meet the funding needs of the Digital Britain Report?s aim of rolling out next generation broadband, a new 50 pence per month levy was introduced on every consumer who uses copper phone lines. The new levy is aimed at bridging the gap in areas where operators are not expected to install the broadband on their own.
The shadow culture secretary, Jeremy Hunt, said that however, if the Conservatives win the upcoming general election the tax would be scrapped, even though it is expected to raise approximately ?175m to fund the introduction of next generation broadband in rural areas.
Instead, the Conservatives would like to encourage the market to take on the tasks, as well as make regulatory changes that may help with the motivation of market leaders.
Regulatory committee Thinkbroadband has actively argued that the Government should be offering incentives companies for deciding to use fibre optic cabling, which currently is taxed at non-domestic tariff rates, making it more costly for operators to consider using and installing.
