Chancellor Of The Exchequer Alistair Darling today confirmed that the UK government will impose a six pound a year phone tax on all UK households with a phone line, whether or not make use of the UK broadband network. The 50p a month tax will be used to raise around £170 million a year to help with the cost of a nationwide broadband network, which should be capable of giving every home in the UK Internet connectivity at a minimum speed of 2 Mb per second by 2012.
While the move has obviously received mixed blessings from various areas of business and consumer groups, the Conservative Party has already pledged to abolish the phone tax if they are voted in at the next general election. When you consider the cost of the BT nationwide broadband network will be in the billions of pounds, it is difficult to understand how a new tax which will raise around £170 million year gross will make any significant difference.
Many believe that the phone tax is nothing but another government income raising exercise preying on the goodwill and good nature of UK businesses and consumers. There are fears that the UK government will milk further taxes from UK Internet users in the future.