Business rates tax on wi-fi and Wimax networks may be
backdated to April 2005, potentially putting an intolerable strain
on many community networks in rural areas that depend on them for
broadband access, Computer Weekly has learned.
The Valuation Office Agency (VOA), which is responsible for
rating non-domestic buildings, plant and equipment, known as the
"heriditament", for business property taxes, is
considering whether wi-fi and Wimax equipment should form part of
the heriditament on which the tax is based.
If it turns out that they do, the tax could be backdated to the
last time a rating was done, which was April 2005. The VOA has
published a new general
valuation for 2010 in draft form for comment and appeal.
Computer Weekly has learned that the VOA has suggested that
wi-fi hotspots and Wimax networks be rated at £100 per access
point. BT alone has 600,000 potential access points because BT Home
wireless routers can be set to provide public access. This could
rake in £29m a year for the government, and possibly a further
£145m in back taxes.
Next-generation access tax
The VOA is also
proposing to levy a £7.50 per year "next-generation access" tax
on homes connected to new fibre networks. BT said recently it would
increase the number of homes with fibre access to 2.5 million,
potentially netting the government almost £19m a year.
The VOA said non-domestic rates were not a new tax, but applied
to all non-domestic property. "There is no new windfall tax on
Digital Britain," it said in a statement.
"Telecommunication installations have been subject to
non-domestic rates for many years, this is nothing new. The figures
you are quoting were used in proposals for new telecommunications
infrastructure based on existing infrastructure values as a
benchmark. They are not an addition to the rateable values of
existing infrastructure that already reflects broadband
connections.
"We are still in discussions with telecommunications operators
including Broadband Stakeholders Group (BSG) to see what is fair
and just. We would welcome input from other stakeholders."
The Community Broadband
Network, which speaks for a number of rural and community
networks, said, "Adding business rates to wireless broadband is not
going to raise large sums from highly profitable publicly quoted
companies that cherry-pick highly profitable areas. But it will add
a burden to organisations prepared to deliver a community solution
where no-one else has. Some of these rural areas may even lose
their only source of broadband as a result of this proposal."