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Re: Broadband ISPs taxed for "generating light energy"
On Oct 10, 2006, at 8:08 AM, Bill Woodcock wrote:
From my reading of the article, it appears that they are attempting toAlso, remember, it's _net_ energy delivered which matters... I'm sure theSounds reasonable to me. Since the sale of energy is usually measured in kilowatt-hours, how many kwh of energy is transmitted across the average optical fibre before it reaches the powereda mplifier in the destination switch/router?
tax at 12.5 percent, the ISPs entire service revenue because that
revenue is derived from the delivery of light energy, thus making the
"IP service" actually a "utility product".
It looks like the tax department is arguing that what is currently being
billed/taxed as a service is actually a product and such product should
be subject to VAT.
It would be akin to California adding 7.75% to my ISP bill for sales tax.