SNP urged to abandon ‘Amazon Tax’ plans

‘Economically damaging’

business bosses have urged the snP to drop ‘economically damaging’ plans to introduce a new tax on online and out-of-town firms.

Cbi scotland warned the plans for the levy would see many companies become ‘collateral damage’ in the move, which ministers hope will boost high streets.

it said the tax would likely hit businesses such as supermarkets, garden centres and outlet stores, which could be forced to lay off staff or close as a result.

The organisation published its response to the scottish Government’s consultation on the barclay Review, and welcomed many of the proposals.

This includes plans to move rates revaluations to every three years.

However, it has taken a firm stance on a so-called Amazon Tax, which would see online retailers and those based out of town, such as retail parks, forced to pay an additional business rates surcharge.

it is understood this money would be used to help boost struggling high streets and town centres across the country.

but the Cbi warned: ‘The scottish nonDomestic Rates system does not hold the unilateral solution. by potentially using it as such, the Government risks a wide range of scotland’s hard-working businesses becoming collateral damage.’

The scottish Government is planning to grant three local authorities the power to introduce the discretionary charge in a pilot scheme.

The Cbi said that if ministers go ahead with the ‘economically damaging policy’ a range of safeguards would have to be put into legislation too.

but the scottish Tories support a new levy in a bid to even out the tax paid by firms. Finance spokesman Murdo Fraser said: ‘This isn’t about hammering a business which happens to be doing well, it’s about rebalancing the taxation burden between the high street and online.’

A scottish Government spokesman said: ‘We are now seeking views on allowing up to three local councils to introduce pilot schemes in which businesses based predominantly online or out of town might be charged a modest business rates supplement. The proceeds from this supplement would be used to support rates relief for businesses in town centres.’