Derelict and abandoned high streets doesn’t only tell a tale of lost jobs and reduced economic activity in our town and city centres. Tesco has reportedly been raising support among UK retailers for an online sales tax in a bid to overhaul the business rates system. CEO Dave Lewis wants rates to be cut by 20%, with losses offset by a 2% tax on online sales. The company is also looking at introducing a levy of up to £2.50 per order from its own stores and will consider whether it should charge customers more if they buy online. MPs have considered reforming business rates but have resisted because it is an easily collectable tax. Under EU rules, an online sales tax would be illegal.
Tesco has reportedly been raising support among UK retailers for an online sales tax in a bid to overhaul the business rates system. CEO Dave Lewis wants rates to be cut by 20%, with losses offset by a 2% tax on online sales. The company is also looking at introducing a levy of up to £2.50 per order from its own stores and will consider whether it should charge customers more if they buy online. MPs have considered reforming business rates but have resisted because it is an easily collectable tax. Under EU rules, an online sales tax would be illegal.