Broadband Tax To Be Law By Next Election

The minister for Digital Britain Stephen Timms has said that the new broadband tax will be law by the time the election comes around. Speaking at a debate in London Mr Timms said that the tax is still a priority and will be 'presented to parliament as part of the Finance Bill'.

The proposed tax which aims to raise cash to improve the nations broadband infrastructure will cost those with fixed phone lines 50 pence per month. The idea for the broadband tax was proposed in the Digital Britain report in order to finance the government's plan to provide 'broadband for all' by 2012.

Those without a fixed line will not have to pay the tax another reason why mobile broadband is best when it comes to saving money if not for download speeds. Pay as you go mobile broadband users will be able to avoid the tax which may help to provide them with a fibre optic connection (eventually).

The tax has proved to be controversial with the Conservatives saying that they would oppose it. Some have said that broadband providers should foot the bill as they stand to profit from increased broadband coverage whilst others have questioned the ability of a 50p tax to pay for a fibre optic network.

Steve Weller of uSwitch.com says that the proposed tax is 'a classic case of robbing Peter to pay Paul.'

"We are talking about a digitally dependent economy and society, and as such, the Government should be looking to share the burden across businesses and consumers alike."