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Is the Government trying to hide the broadband tax?

Tue, 15/12/2009 - 15:02 |  David

We hear a lot about so-called “stealth taxes”, but it really does seem the Government is awfully keen to keep the broadband tax hidden from view.

The Government’s Consultation Paper on the 50p per month Landline Levy (to give its proper name) states:

“We expect that the duty will be passed down the supply chain by the line owners and subsequently by retailers to customers. There will be no requirement on owners or retailers to show the duty separately on their billing to end users.”

The Government says this is designed to “prevent costly systems changes for line owners”. But there’s another reason why the Government might be none too keen for BT and its ilk to reveal exactly where your money’s going.

“If line owners recoup the duty from individual users, whether through a separate item on the bill or by including it in line rental charges, this is further consideration for the service being supplied and is therefore subject to the standard rate of VAT.”

Yes folks, we’re being taxed on a tax. That’s really quite special.

 

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