Online retailers furious at plans for internet tax

22 July 2013

online_shopping It is all kicking off between online and high street retailers after some of the biggest web-only businesses dismissed ideas for an online tax as "nonsense".

The chief executives of Ocado, Shop Direct, Boden and N Brown have laid out their opposition in an open letter to chancellor George Osbourne.

Ocado chief executive Tim Steiner, has now put himself on a collision course with new business partner Morrisons after the supermarket's boss Dalton Philips called for an online tax.

The letter said: "Online is a rare and precious success story for the UK and one that we should take pride in. At a time when SMEs in these sectors are attempting to deliver innovation, growth and jobs they should not be choked off by unintended consequences of an unfair tax."

"There is no logic to penalising companies that provide consumers the convenience, efficiency and value online shopping offers."

This comes on the back of high street retailers calling on the government to overhaul the business rate system, with the idea of a thing similar to the US online tax system, with Morrisons' Philips adding: "As more and more sales migrate online, it seems to me intuitive that you would tax the online channels as well."

Or, maybe, the high street needs to quit whining and realise that there's a new business model to exploit and they might make some money if they take their heads out of their arses?

TOPICS:   High Street News   Tax   Technology


  • I m.
    inb4 bum foxes flex herb etc. etc. yawn.
  • Dick
    I can understand an online shopping tax if that tax is used to improve online services - re-investing it into improvement of internet infrastructure.
  • kv
    wtf, is dis real?
  • Cooking B.
    Why shouldn't they pay an online tax...after all a bricks and mortar retailer needs to pay business rates etc and an online tax would level the playing field and allow the independent retailer to be more competitive against online only retailers.
  • fibbingarchie
    @ Cooking the Books Why should the playing field be levelled? You sound like the candlemaker that wanted the sun taxed.

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment