Cyclops to tax Google.

Nice One Labour....
Google could be be hit with an online advertising tax to boost the coffers of the BBC, under proposals being discussed by the Government.

Ministers are considering taxing search engines, download websites and broadband providers to fund public service TV and the roll-out of broadband.

It could mean tax bills of more than £ 100million, which in turn may force firms to start charging for emailing, internet searches and social networking, which are used by millions of Britons every day.

(belated Hat tip to myopic13 for the looney Cyclops pic.)

Conservative MP Philip Davies, who sits on the Commons culture, media and sport select committees, criticised the proposals, saying the money to fund the future of 'Digital Britain' was lying unused in the BBC's coffers.

'They are looking at everything apart from the thing which is shooting them in the eye, which is the BBC,' he said.
'There's piles of money sat glaring them in the eye. But they are trying everything to avoid doing the most obvious thing of all.'

Chancellor Alistair Darling has already outlined plans in his budget which give the broadband industry money from the BBC's underspend on digital switchover.

An estimated £250million which it is unlikely to have spent by 2012 will go towards installing universal broadband.

But ministers are discussing options to raise more cash from successful internet companies.

They believe millions of pounds could be made from a 'per click' tax on companies like Google. It is thought, however, that the money, supposedly earmarked for broadband services, would also go to boost public service broadcasters.
Another, less favoured, option being discussed would see a tax levied on broadband providers, according to the level of megabytes used by their customers.

Critics say the extra costs would be passed on to the customers.

Alternatively, a charge could be issued for downloading files from the likes of iTunes, but insiders say it is not politically 'tenable', since it would mean a direct hit on consumers pockets.
Sources say the proposed taxes have been discussed by officials at the Department for Business, Enterprise & Regulatory Reform and the Department for Culture, Media and Sport.

They would also have to be approved by the Treasury before they could be introduced.

The chair of the culture, media and sport committee, Conservative MP John Whittingdale, dismissed what he called a 'windfall tax' on search engines.

He said: 'I have never been in favour of levies. I just don't like the idea of extra tax anyway.

'If you charge Google it would be the equivalent of a windfall tax. Here is a company making lots of money so let's slap a tax on them.'

A spokesman for Google said: 'It seems strange to come up with a new tax proposal a week after the budget. Especially an idea that was rejected in France because it would have penalised a growth industry in the middle of a recession.

'The Government should be encouraging companies who are creating jobs not punishing them with higher costs. What's more, this proposal would hit commercial broadcasters and newspapers who also make money from online advertising.'

A spokesman for the Department for Business, Enterprise & Regulatory Reform said: 'There are no plans to impose new taxes.'

So lets see, the plan -denied by the Department for Business, Enterprise & Regulatory Reform - is to tax private companies that turn a profit to fund a bloated and biased state broadcaster that is funed through a telly tax; one that does not make a profit.

Would not a better idea be to prune back the BBC, close down/sell off its failing parts until it does make a profit and relieve the taxpayers of this land from the burden of the BBC.

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