Members of Parliament attack planned broadband tax

The UK government's planned 50 pence monthly tax on telephone lines to pay for superfast broadband has been criticized by a Labour-dominated group of Members of Parliament.

The Commons Business Committee said the new tax -- a centerpiece of June's Digital Britain report -- would unduly hit poorer families who were unlikely to pay for faster broadband. It said the "regressive" tax would "place a disproportionate cost on a majority who will not, or are unable to, reap the benefits of that charge". The committee's report also said the scheme, which is expected to raise £175m per year, could distort the market.