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VoIP Tax in the Pipeline?

Filed in archive Industry News by gautam on June 02, 2006

voice_over.jpg
If the proposal gets through then VoIP users would have to pay a tax on their monthly bills. Yes, you read it right, FCC is contemplating over a proposal by Chairman Kevin Martin which would be requiring the VoIP firms to pay directly into the Universal Service Fund (USF) which is a fund used to subsidize telephone service in rural and low income areas, libraries and schools.

Customers would have to pay seven percent of their monthly bills as tax and it is very much sure that the companies would pass the tax on to the end users. FCC has been finding ways to overcome the $350 million shortage to the fund after it had declassified DSL as telecommunication service last year. It is still not clear as to how VoIP providers would fit the bill as some of the providers are already contributing to the fund directly or indirectly through telecom companies on which their services ride.

As the government has just lifted the 108 year phone tax to pay for the Spanish American War therefore don't expect the tax would not be levied but wait till 15th June to get the clear picture


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