Amazon tells government online sales tax would wound small retailers using its platform
An Amazon manager cautioned the government that a levy on internet heavyweights would cause serious damage to the UK’s small retailers,
According to a report by Sky News, John Boumphrey, Amazon’s UK country manager, urged a Treasury minister against an online sales tax (OST) at a meeting with retail chiefs on Wednesday.
A one per cent levy would damage hundreds of thousands of small firms that operate via the Amazon platform, Boumphrey said.
Retail bosses were meeting with the financial secretary to the Treasury, Lucy Frazer, amid a mixture of views among businesses over the possibility of a new tax on e-commerce powerhouses.
Sainsbury’s finance director has called for digital retailers to be taxed more in order to finance slashing rates faced by bricks-and-mortar shops while M&S has said innovative retailers should not be punished for adapting to shopping trends.
However, many retailers are keen to see a root and branch review of the business rates system, with a new Retail Jobs Alliance (RJA) keen to see the playing field levelled between operators.
A months-long Treasury consultation into the possibility of an online sales tax closed last week.
A Treasury spokesperson said: “We have not decided whether to proceed with an online sales tax.
“The purpose of the recent consultation was to consider the design options and economic impacts of such a tax, and explore the arguments for and against.”
Speaking to CityA.M. earlier this month, retail titan Theo Paphitis echoed calls for an overhaul of the system.
Anyone with “half an ounce of brain power” would see the lack of sense in “putting the burden of taxation onto the poor humble shopkeeper on the high street,” as opposed to taxing e-commerce heavyweights more, Paphitis said.