September 1, 2009

Imposition of Government’s Stealth Tax Still a Possibility despite Criticism

The UK Government’s plans to impose a stealth tax on all fixed lines to the tune of £6 per year, which roughly translates to 50p per month, may still see the light of the day despite a recent indication by treasury minister Stephen Timms that the plan will be abandoned for the time being.

During the publication of the Digital Britain report, the government said that it felt the need to expand and diversify the country’s digital network to ensure that all houses in the UK have access to internet. The aim of the government’s broadband-for-all agenda is to ensure mobile broadband UK connectivity. However, this requires a lot of funding and the government by way of this stealth tax expects to raise money to the tune of £150-£175 million for providing Next Generation Access (NGA) to its people.

According to the government, collections from the tax will be huge given the fact that all houses in the UK have fixed lines. However, this idea is still in its discussion stages at the Digital Britain Forum.

Critics feel that the government’s digital vision suffers from inadequate planning and that the government should in fact aim higher to ensure a bright digital future for the nation, which it desperately needs.

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