The Courier & Advertiser (Perth and Perthshire Edition)
SNP back ‘windfall tax’ on Amazon to counter economic hit of Covid-19.
Finance secretary wants firms that profited during pandemic to contribute more
Kate Forbes said a “windfall tax” should be imposed on companies like Amazon and Google to boost public funds as the economy contracted by record-breaking levels.
The finance secretary said online businesses that have benefited from the coronavirus pandemic should contribute more as new data showed UK economic growth figures fell by 20.4% for April, the highest decline ever recorded.
The figures published by the Office for National Statistics were three times greater than the decline recorded during the whole of the 2008 to 2009 financial crisis.
Appearing at Holyrood’s finance committee, Ms Forbes said the virus would have a “huge” impact on Scottish businesses and result in rising unemployment.
Despite the Scottish budget being revised upwards to more than £52 billion, she also said the billions of pounds the Scottish Government was spending on combating Covid-19 was greater than the amount of cash coming from the UK administration.
In order to balance the Scottish budget, the Scottish Government needed more Treasury cash or more borrowing powers.
Otherwise, cuts would have to be made from frontline NHS, local government and public services, the finance secretary warned.
She also claimed there were “significant” risks that the amount of money coming to Scotland from the Treasury would not be as much as first forecast.
Ms Forbes agreed when SNP MSP George Adam suggested a “windfall tax” should be introduced for firms like Amazon, Google and big retailers that had “done so well” during the pandemic.
The finance secretary said: “Clearly there are some very large organisations, corporations that have benefited from the pandemic and I think we should be looking to them in order to fund some of our needs going forward.”
She acknowledged that most tax powers were reserved to Westminster but said there was a mechanism under the Scotland Act to transfer the appropriate levers to Holyrood.
“It is absolutely right to ensure all avenues remain open when assessing how we respond to the severe economic effect,” she said.
“I certainly think that it is time for that to be delivered.”
Previously, Nicola Sturgeon’s administration had attempted to use a review of the Scottish rates system to introduce an “Amazon tax”, but it was abandoned following an outcry from businesses that said it was poorly designed.
Ms Forbes also raised the prospect of landowners having to pay more tax when the subject was raised by Labour’s Alex Rowley.
Mr Rowley asked if a land tax should be imposed on “wealthy landowners” who had gained from government grants.
Ms Forbes replied that “nothing was off the table”.