UK to consider online sales tax on goods

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UK to consider online sales tax on goods

UK to consider online sales tax on goods

In Irish fashion news, it’s reported that the Chancellor of the Exchequer in the UK, Rishi Sunak is considering a sale tax on all goods sold on-line.

With concerns already mounting over the future of the British High Street, Sunak is looking at the possibility of placing a tax on goods that are purchased on the net.

According to The Times newspaper in the UK, the Chancellor is co-ordinating a think tank to look at ways to even the bridge between High Street retail and on-line sales platforms.

With movement restrictions already being lifted on shopping during COVID-19 in the UK, Rishi is already exploring ways to help the High Street to compete with on-line stores.

I what would be a controversial move by the UK government, on-line retailers would have to charge a set tax on goods sold on their platform which would be collected by the UK Exchequer.

The sales tax would be seen as a sustainable and meaningful revenue source for the government which would allow retailers to compete fairly with on-line stores.

Some of the major differences between online stores and physical High Street stores is the disadvantage of having to pay expensive rent and rates to landlords. To add to this, they also have to cough up for extra security costs and staff to run their stores.

In a recent report published by the British treasury, it highlighted worries that business rates charged by local councils were unfairly hammering businesses on the high street compared to their rival on-line competitors.

There is also damming evidence to show that during the coronavirus pandemic, high street stores and shops that were forced to close, have suffered more than stores that trade on-line

The muted “sale tax” on goods sold on the net would be an outlet to raise extra funds that could be reinvested to help rejuvenate the High Street.

Last week (15.07.2020) The UK government reduced their VAT rate from 20% to 5%. This will stay in place until the middle of January 2021. However, this excluded the retail industry sector leaving retailers angry and frustrated that the government has failed to support them.

CEO of the British Retail Consortium (BRC) in the UK, Helen Dickinson has pointed out that It was disappointing that Mr Sunak did not extend this measure to the retail industry which is responsible for employing over three million people. She sees it as a missed opportunity and is calling on the British government to reconsider their decision ahead of the UK’s autumn budget

 

UK to consider online sales tax on goods

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