The 50p-a-month tax would have been applied to all households with a landline telephone. It's estimated it would have raised £170m a year to fund broadband roll-out across the UK.
It was a key part of Labour's strategy to ensure all parts of the country get super-fast broadband.
The Conservatives have always opposed the tax, preferring to allow the market more time to implement broadband services before Government intervention. They vowed to scrap it if they won the election.