The UK's communications minister is set to propose that the Government impose a universal levy on broadband bills to compensate entertainment companies for their losses from illegal downloads.
Lord Carter is to unveil his new report setting out his vision for Digital Britain next week, according to The Telegraph.
The ‘tax' is being considered to ‘compensate film and music companies'. It is still unclear if this will extend to games firms.
According to The Telegraph report, Lord Carter is known to be sympathetic to the proposals, but ‘industry sources' believe he will stop short of explicitly backing the plan, for fear of slowing his drive for universal broadband across the country by 2012.
Lord Carter is also expected to recommend that internet service providers will have to pass on a customer's information if there is legal action against pirates. However, the ISPs will not be liable for what they have done.