WELLINGTON: The New Zealand Telecommunications Forum (TCF) reports it is concerned about the process the government has followed to extend a tax on the telecommunications industry to pay for the extension to rural broadband. The Government tabled a Bill in the House under urgency, to extend the Telecommunications Development Levy to tax the industry to pay for the next round of the rural broadband initiative.
The TCF supports expanding broadband to New Zealanders wherever they are, and the industry is investing billions to support this goal. The Forum also believes the government’s move to partly subsidise the build of the fibre networks (UFB) to urban New Zealand is a positive investment for all.
However, the TCF says extending the rural broadband initiative, and taxing the industry to fund it, “is not only inconsistent with the funding approach for UFB, but is a financial burden the industry cannot afford as it deals with declining revenues and profits”.
“The Bill extends a tax, which to date, has not been explicitly recovered from consumers. However, the industry cannot continue to absorb ongoing costs of this magnitude”, the TCF also said.
