Broadband tax plans slammed

The government's plan to tax UK households with a telephone line £6 a year has been attacked by TalkTalk.

The ISP's chief executive, Charles Dunstone, criticised the 50p per month broadband tax, which the government said would help to fund better broadband services in rural areas poorly served by existing networks.

Dunstone questioned whether the money raised by the tax would be allocated fairly.

"This is an unjust and regressive tax on all phone customers, which will subsidise mostly richer rural households that can afford high-priced, super-fast broadband services," said Dunstone.

TalkTalk also said that the tax will also put off private investors.

"The scheme is likely to delay next-generation broadband roll-out in rural areas rather than hasten it as private investors will wait for public funds to be made available. This will mean that much of the tax will be wasted investing in networks that the private sector would have built themselves anyway," Dunstone said.

The plans have already been subjected to strong criticism from much of the broadband industry.

In August, the government appeared set to drop the plans but has still pushed on with a public consultation, which TalkTalk is presenting evidence to this week.