Tiga condemns broadband tax

Tiga condemns broadband tax
Will Freeman

By Will Freeman

January 27th 2009 at 12:02PM

Proposed levy is â??wrong in principleâ?? according to trade association

News that the UK’s communications minister is to propose a tax on broadband bills to remunerate entertainment companies suffering at the hands of download piracy has been condemned by Tiga.

“The idea that a universal tax on broadband bills should be imposed in order to compensate entertainment companies for losses incurred from piracy and illegal downloads is wrong in principle,” said Tiga’s CEO, Richard Wilson. “Innocent people should not be required to pay heavier broadband bills because of the activities of criminals.”

The suggested policy is also wrong on practical grounds. The tax could generate perverse behaviour: individuals would have a stronger incentive to illicitly download material if they were required to pay this putative tax.”

Tiga’s response comes in the wake of news that Lord Carter is expected to make his proposals next week, when he will also recommend that internet service providers will have to pass on customers details’ if pirates are subject to legal action.