‘They need to pair their fair whack!’ says one expert. An online tax could hit internet behemoths in weeks.
Within weeks, internet behemoths could be hit with an online sales tax, bringing in billions of pounds to help save faltering high streets.
The Treasury is looking into the proposal, according to Business Minister Paul Scully, in response to an increase in online buying.
Making massive online companies like Amazon pay its “fair share” is a significant aspect of the Chancellor’s basic business rates review, which is set to be released this autumn, according to him.
“At the moment, online corporations utilize their accountants and attorneys to shift their money around the world,” Mr Scully said at the Conservative Party Conference in Manchester. “We’ve got to make sure they’re paying their fair whack here in the UK to pay back to the community.”
He also hinted that major changes to the business rates structure are on the way.
“Business rates are a huge, one-time tax revenue stream for the Chancellor. They are quite predictable, and the government can easily sit on them.
“However, we don’t want to settle for the mundane.” We want to look ahead to ensuring that our tax structure is up to date for the twenty-first century.
“In the autumn, we’ll get the results of the fundamental business rates review.” I’m hoping it’s as essential as it claims.
“Because businesses are charged based on earnings rather than square footage, a fairer balance would be significantly more reasonable.”
Mr Scully’s comments, spoken at a Taxpayers Alliance fringe event about rescuing the UK high street, lend credence to the Daily Express’s Save Our High Streets Crusade.
They come less than a week after Boris Johnson advised Amazon CEO Jeff Bezos that the corporation must “pay its fair share” of UK taxes.
Last year, Amazon sales in the United Kingdom increased by 51% to about £20 billion, because to coronavirus lockdown limitations.
However, Kingfisher plc’s Group Director of Corporate Affairs, Nick Lakin, informed attendees at the fringe that the company only pays £60 million in business rates in the UK.
B&Q and Screwfix, on the other hand, have a combined turnover of £5.5 billion but pay £140 million in business rates.
On annual sales of £10.7 billion, Marks & Spencer pays around £184 million in rates, while Tesco pays £700 million on sales of £63.9 billion.
Mr. Lakin encouraged the government to reduce business taxes and establish an online sales delivery system. “Brinkwire News Summary.”