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ISPA Slams UK Fibre Optic Tax

by Amanda Banks, Tax-News.com, London

20 August 2010

New broadband business rates outlined in a proposal by the UK Valuation Office Agency (VOA) have provoked criticism from service providers.

The Internet Service Providers’ Association (ISPA UK) believes the suggested GBP20 (USD31) tax on all non-BT (British Telecom) fibre optic connections will hinder small scale community projects with increased costs at a new rate of almost three times the original 2009 proposal.

The VOA has suggested that services providers pay a tax of GBP20 for each home they connect to a fibre optic-based network, much higher than the GBP7.50 per home rate proposed in April 2009.

According to the ISPA, whilst the proposal could generate around GBP205m in tax revenue, discouraging community, rural and alternative network investment with augmented rates "contradicts previous government statements on the issue."

The ISPA has called for an “urgent review” of the VOA’s proposed revisions.

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Tags: tax | business | internet | telecoms | e-commerce | United Kingdom | commerce

 






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