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TalkTalk issues warning over broadband tax

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Posted 2nd November 2009 at 9:12am by Ewan Taylor-Gibson

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The introduction of a tax on fixed phone lines could cause the price of web packages to rise, it has been claimed.

According to broadband provider TalkTalk, this measure could force many households to give up their connection.

Charles Dunstone, Chief Executive at the firm, described the planned 50p-a-month levy as "unjust and regressive", predicting it will backfire on the government as it seeks to roll-out next-generation broadband.

"We estimate that the increase in price will mean that more than 100,000 mostly low-income homes will be forced to give up their broadband lines," he stated.

"This is wholly inconsistent with the government's plans to tackle digital exclusion by increasing uptake and use of broadband."

Mr Dunstone suggested that the tax would merely subsidise mostly richer rural households that can already afford super-fast broadband services.

TalkTalk also recently criticised the government's plans to disconnect any web user found to have shared files illegally over the internet.

More news on: TalkTalk, Customer service and satisfaction, Broadband coverage, Consumer trends, Future developments

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4 comments

  • Derick Donaldson, 2nd November 2009.

    The proposed 'tax' on broadband is what my grandfather would call "a spratt to catch a mackeral'. Put bluntly the treasury will find it all to easy to increase this levy, wait until it costs the same as your television licence, for it will, on that you can be sure. Those of us old enought to remember the introduction of VAT will look back fondly now on the old purchase tax. No it will be too much of a temptation, end it now.

    Reply

  • Malcolm Reeves, 2nd November 2009.

    It's only an extra six quid a year. Even poor families can afford that.

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  • Carl Barron, 2nd November 2009.

    Excessive taxes in the UK are killing off businesses due to this government’s proven total lack of ability to handle the money it gets from revenues.

    Reduce all Taxes and promote growth, if you do not, the results will hit like a whirlwind of further finical devastation and job losses.

    Excessive taxation is crippling the UK’s ability to recover as it is.

    Signed Carl Barron Chairman of agpcuk

    Reply

  • Breenio, 19th November 2009.

    @Malcolm Reeves

    ...we have just got Virgin and they are chargin us a "tax" of £2.50 ish a month....thats not £6 a year..and they never stated that would happen nor what it is for!

    Reply

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