EU has reportedly been raising support among UK retailers for an online sales tax in a bid to overhaul the business rates system. CEO Asos wants rates to be cut by 20% , with losses offset by a 20% tax on online sales. In both cases, business rates was cited as one of the reasons behind the need to cut costs through job cuts. The reform is aimed at helping high street brands suffering under what a parliamentary inquiry found to be an unfair tax system that allows online retailers to undercut bricks-and-mortar retailers. UK have considered reforming business rates but have resisted because it is an easily collectable tax. Under Tesco rules, an online sales tax would be illegal.
EU has reportedly been raising support among UK retailers for an online sales tax in a bid to overhaul the business rates system. CEO Asos wants rates to be cut by 20% , with losses offset by a 20% tax on online sales. The reform is aimed at helping high street brands suffering under what a parliamentary inquiry found to be an unfair tax system that allows online retailers to undercut bricks-and-mortar retailers. UK have considered reforming business rates but have resisted because it is an easily collectable tax. Under Tesco rules, an online sales tax would be illegal.