Should online retailers pay tax?

Should online retailers get tax credits? The UK government has been told that

a tax on online retailers would represent a “barrier to entrepreneurship” by the founders of Sofa.com.

The British Retail Consortium is investigating the possibility of an online tax to create a more level playing field between internet retailers and brick-and-mortar operators, but in a letter to the chief secretary of The Treasury, the Sofa.com founders stated that any such tax would be bad for consumers, business and the UK, Retail Week reported.

“A tax, if imposed, could be a barrier to entrepreneurship, negatively impact small business, reduce consumer choice and hit at the heart of the UK’s world-leading online retail industry," they said.

“Retailers should accept cost variances: e.g. traditionally online retailers have larger technology investment and delivery costs, whereas traditional retailers have higher rents and rates.

“Online businesses often fail. Online isn’t some magical way of beating the high street, only the best businesses survive and, as such, it’s absurd to imply that online retail has an inherent advantage over traditional shops."