UK Union Fears For Broadband Tax Credit Plan
The UK Communication Managers Association
(CMA) has expressed concern that a tax relief proposal from the the Broadband
Stakeholder Group (BSG) to stimulate the wider use of broadband Internet
access will be ignored by the government in view of the global economic
slowdown and the conflict in Afghanistan. CMA Director General David Harrington has
said: 'Tax credit for suppliers and tax relief to consumers would be very
welcome. However, the Treasury will decide on this and it will have to
take the view that short-term pain is worth it for long-term gain, and
I am not sure it will do so.' Mr Harrington is an advocate of government
intervention to help the broadband market to expand, 'the CMA has long
urged the government to seize either the chicken or the egg in order to
let demand grow. The free market cannot solve this one; it requires intervention,'
he commented. The Department of Trade and Industry is currently
considering the proposal to give tax incentives to broadband; the tax
cuts would be similar to those currently enjoyed by the UK film industry
which allow the costs of production to be deducted from film companies'
taxable income. .
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