Yes – it’s been confirmed – those annoying people we call government have decided that they are going to add VAT to the proposed 50p per month phone line tax. With the VAT rate about to rise back to 17.5%, that makes the tax 58.75p per month or £7.05 per year.
This is seriously frustrating. The government just wants to reel in the money. Has anyone realised that it is impossible to revolutionise UK broadband networks in under 10 years. Frankly, I’d call this idea more of a scam, and sadly it looks like it will become a reality.
I really think the government has no idea what it is talking about. How the hell does the goverment expect to upgrade 5000 exchanges (5600 exchanges in UK approximately) to next generation broadband in under 10 years. With our government, there isn’t a hope in hell.
The Treasury has said approximately £175 million per year with this tax and I suspect very little of it will actually get spent on upgrading our broadband.
It has also been confirmed that the tax has been given the “green light” so it looks like the government will be pickpocketing more money from us within the next few months.