{"id":167009,"date":"2020-07-28T08:22:00","date_gmt":"2020-07-28T08:22:00","guid":{"rendered":"https:\/\/www.theindustry.fashion\/retailers-warn-against-an-online-sales-tax\/"},"modified":"2021-08-06T12:06:39","modified_gmt":"2021-08-06T12:06:39","slug":"retailers-warn-against-an-online-sales-tax","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/retailers-warn-against-an-online-sales-tax\/","title":{"rendered":"Retailers warn against an online sales tax"},"content":{"rendered":"
Retailers have warned that an online sales tax would lead to higher prices for consumers and place more stress on an over-taxed sector<\/strong> after it emerged Chancellor Rishi Sunak<\/a> was considering implementing such a measure to shore up the high street and generate tax revenues for the Government.<\/p>\n <\/p>\n The Government is exploring the idea of a tax that, according to some reports, might take the form of 2% on every online order or a delivery levy to curb traffic and pollution<\/strong>. The Government made a call for evidence last week, a process which will continue until Spring 2021, after which it will make its decision.<\/p>\n However the British Retail Consortium (BRC)\u00a0director of business and regulation Tom Ironside, told The Guardian<\/em><\/a>: \u201cTaxing the sale or delivery of online goods would simply be another burden on an already overtaxed industry, one that would ultimately hit consumer spending through higher prices.<\/p>\n \u201cThroughout the pandemic, many of us have been relying on retailers to ramp up their online services<\/strong> to ensure we can all get the goods we need. The government should not harm these efforts by further taxing the businesses providing these services, and the people they serve.\u201d<\/p>\n However not all retailers are opposed to the idea of a so-called \"Amazon tax\"<\/strong> with Tesco chief Dave Lewis one of the most high profile supporters. He has suggested it is a method that could be used to raise tax for the Government and allow for business rates to be cut for all bricks and mortar retailers.<\/p>\n Prior to the crisis around 80% of retail sales were made in physical stores but this has dropped to 70%<\/strong> as consumers of all ages have come to rely on online shopping. For many smaller retailers, the ability to sell online has been a lifeline during lockdown and the immediate aftermath and many have ramped up their capabilities in this area.<\/p>\n It is not clear that the Government would use revenues from an online tax to offset a reduction in business rates. Last week it was revealed that the next valuation of the property tax, which determines how much in rates a business pays, would not take place until 2023.<\/strong> Retailers argue that property prices have slumped since the last valuation in 2015 meaning they will be forced to pay inflated rates for three more years.<\/p>\n Frasers Group said the news would force it to re-evaluate the viability of some stores<\/a> in in its estate.<\/p>\n