Leaked documents shows plans to triple £6 broadband levy

The controversial £6 broadband tax on telephone lines, planned by the Government to fund the introduction of speedier broadband across the UK may be tripled according to a leaked document stumbled upon by The Times.

The paper, drawn up by Revenue & Customs, shows ministers will adjust the tax according to the number of phone lines they rent. Throughout the UK over 1.7 million residents have more than one phone line.

This rule will also be applicable to families with one telephone connection and a separate line for broadband or fax. Those with all three could end up forking out £21.15 per year instead of the original proposal of £6. Initially, when the levy plans were announced in June it was thought the tax would be charged to each household once.

In the document, leaked to the Conservatives, The Times found notes detailing a £30 million annual windfall for the Treasury as it also plans to charge VAT on top of the new levy. As The Times pointed out this would be “essentially creating a tax upon a tax.” The broadband levy will also be applicable to those with high-speed fibre-optic connections as well as standard copper broadband lines.

Speaking to the paper a number of internet service providers warned these extra fees could driving 100,000s homes off broadband. The Carphone Warehouse slated the plans as adding “insult to industry for consumers” and being “regressive and unfair”.

Quizzed on the leaked document a government spokesperson said: “We do not comment on the contents of leaked documents. It is vital for jobs and growth that Britain has a world-class digital infrastructure. Next-generation broadband brings a range of innovative services and applications with wide business, health and social benefits.”

The Conservatives have pledged they will scrap the broadband levy plans if they are successful in the next general election.