ASOS and Gymshark among retailers warning of online sales tax impact
A group of 11 retailers and industry groups have urged Chancellor Rishi Sunak to reject proposals to introduce an online sales tax, warning that it would deepen the cost-of-living crisis and "hurt, not help, the high street", The Telegraph reports.
In a joint letter dated 27 May, the major firms, including Currys, ASOS and Made.com, said they are “deeply concerned” that the plans for online sales tax “would hit millions of households that are already struggling to cope with the highest inflation for 40 years and soaring bills”.
The companies and industry groups added that the burden of business rates on retail "is too high and needs reforming, but an additional tax on a sector that is already overtaxed is not the answer".
The letter comes amid the Government's three-month consultation into possibilities for an online sales tax to ease the business rates burden on high street stores.
The Treasury stated that the consultation was "exploratory" and that it has not yet made a decision on whether to introduce an online sales tax.