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Wednesday, June 17, 2009

Telephone Tax

The government outlined plans for a £6 annual per line telephone tax, to be levied from 2013 on everyone with a landline. The theory being that the £1BN revenues raised would be used to fund improvements in the internet infrastructure in the UK.

In practise, as we know from other taxes such as NI and car tax, the money raised would be added to the general pot that the government uses to fund its general expenditure.

In other words, it is an increase in ordinary taxation by the back door.

The government seems to have forgotten that it raised billions when it sold, at hyper inflated prices, bandwidth to the mobile operators for the 3G networks (which have failed dismally).

Where did that money go then?

Why can't that be used to fund the "digital revolution"?

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