The increase in the number of people using online shopping facilities has a direct
correlation with the decrease in sales in retail stores. Indeed, shoppers are
not going out much since they are able to purchase mostly everything from
within the comfort of their home, which is bad news for the high street. To try
to remedy this situation, the UK government is planning to introduce sales tax.
This additional charge will increase the costs of buying on
the Web and having product delivered to your home. According to the chancellor Rishi
Sunak, an “online sales tax” will
help make up for the billions lost by both the government and retail outlets
during the pandemic. It will be an addition to the existing tax system where
retailers settle taxes based on what is known as ‘rateable value’, that is, the
rental value of their property. This system has been criticised by many since
it offers more advantages to e-commerce merchants who do not have to pay
expensive rents.
Additionally, it is being hoped that the introduction of
this online tax will drive shoppers back to the high
street, which would give retailers a little boost. The Times has
predicted that the tax will be around the 2% mark and that it could raise £2
billion a year for the Treasury.
Another tax for online sales may be introduced
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