Government mulling tax on internet ads?
- Added:
- May 05, 2009
Ministers are considering taxing search engines, download websites and broadband providers to fund public service TV and the roll-out of broadband, according to a newspaper report.
The proposals, called a 'multi-click tax', are reported to be unveiled in Lord Carter's Digital Britain report this month. They will recommend a tax on ads placed on sites such as Google, Facebook and MySpace.
The level of the proposed tax is not known, however it would come on top of corporation tax and VAT, and could amount tax bills of more than £ 100million, according to a report in The Daily Mail.
However, critics of the proposals say such a tax could force popular websites to start charging for emailing, internet searches and social networking, which are used by millions of Britons every day.
Sources say the proposed taxes have been discussed by officials at the Department for Business, Enterprise & Regulatory Reform and the Department for Culture, Media and Sport.
The proposals would also have to be approved by the Treasury before they could be introduced.
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