‘Put 1% tax on web giants to even field’
TESCO has called for online retail giants to be hit with a 1% online sales tax ahead of the spring Budget.
It comes as bosses at supermarkets, high street chains and retail property owners urge the Chancellor to overhaul the current tax system and put them on a “level playing field”.
Tesco boss Ken Murphy is among 18 bosses to sign a letter to Rishi Sunak that also calls for a permanent reduction in business rates.
It comes days after Amazon revealed UK sales rose 51% to £19.3billion in 2020 thanks to lockdown shopping trends. The Chancellor is considering tax increases for tech firms and online retailers that have raked in business during the pandemic, according to reports. The Treasury said: “Our business rates review call for evidence included questions on whether we should shift the balance between online and physical shops by introducing an online sales tax. We’re considering responses now.”
REQUIRING companies to pay fair on sales would stop huge global corporations contributing a relative pittance in tax.
When Amazon’s 2020 UK business soared 51% to £19.3billion during a lockdown year, the time for talking must surely be over.
Chancellor Rishi Sunak should be imposing a loophole-free digital services tax in next month’s Budget, not threatening it in next year’s Budget or the one after.
All retailers must pay their dues – including online ones benefiting from public investment in everything from policing and roads to the education and health of staff and customers.