UK Government Mulls Tax Cuts For Broadband Industry

by Amanda Banks, Tax-News.com, London

15 October 2001

The UK government has confirmed that the Department of Trade and Industry is considering giving tax incentives to broadband content providers in a bid to boost the flagging industry. 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.

Meanwhile, E-Commerce Minister Douglas Alexander has met with business and consumer leaders to review the first draft report from the Broadband Stakeholder Group. The group is an open forum comprising organisations from the broadband infrastructure, services and content sectors, along with broadband users in the public and private sectors and consumer representatives.

Its role is to advise the government on further steps it should take to facilitate the rollout of broadband services in the UK as well as developing a comprehensive strategy for UK broadband. The strategy is due to be published in November along with a detailed Government response and it is expected that any decision on tax incentives for the industry will be announced at that time.

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