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UK retailers warn of risk of online sales tax

By Huw Hughes

29 Jul 2020

Retailers have warned that an online sales tax could drive up prices for consumers as the UK mulls introducing the levy to protect high street stores from online competition.

Chancellor Rishi Sunak is considering introducing the new tax in England as a potential replacement for business rates but the British Retail Consortium is concerned about the proposal.

“Taxing 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,” Tom Ironside, BRC director of business and regulation at the, said in a statement.

“Throughout the pandemic, many of us have been relying on retailers to ramp up their online services 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.”

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