Originally written by Timothy Adler on Small Business
Small businesses face being hit with another sales tax as Rishi Sunak considers launching a digital sales tax for goods sold online.
The Treasury is debating whether to charge 2 per cent on top of goods sold online, as a way of giving High Street shops a slight price advantage over online retail, according to The Times newspaper. The levy would raise around £2bn a year.
Last year, the Commons Treasury committee called on the government to consider an online sales tax to create a more level playing field in the retail sector.
>See also: Nearly a quarter of small businesses cut jobs despite furlough scheme
Another idea under consideration is charging home-delivery customers a surcharge for having online goods delivered online, which say critics, is adding to urban congestion.
Both ideas are part of a wider review into business rates, which the Government launched as a consultation earlier this month.
The review, begun last week, will conclude by next spring. In a consultation paper, the Treasury said it was “exploring the potential strengths and weaknesses of alternative property and online taxes put forward as possible replacements for rates”.
The COVID-10 pandemic has struck when bricks-and-mortar shops are already struggling