PPP Budget FY 2009/10

Premium Rate Regulator Sets 2009/10 Budget

It is seldom understood that the Premium Rate Regulator is funded not from government coffers, but from a “tax” on outpayments, derived directly from the phone operators.

This levy, sits at 0.48% of Net Outpayments (i.e the amount after tax (VAT)) and is paid directly to PPP from the Mobile/Phone Service Providers.

This levy was due to be increased by 2.4%, but after a review and with industry participation, the increase has been reduced to 0%. In other words nothing – no increase! Could this be a first for a government regulator to actually, in real terms decrease it’s tax on our services?

Perhasp this is an indicator that PPP are more in tune with the industry and market conditions than most (your fuel duty is going up on 1st April!). This is encouraging for those in the mobile payments market, where operating and competitive conditions are exceptionally tight and any eroding of margins is to be avoided!

PPP should be congratulated on setting this example of government regulators – now lets see if the rest follow – some how I doubt it!