Online retailers say no to online sales tax burden.
Tuesday July 23 2013
Leading internet retail firms have warned against levying an online sales tax on items purchased over the web.Executives from six companies - including Boden, Shop Direct and Ocado - have signed a letter to chancellor George Osborne warning against a UK equivalent of the US Marketplace Fairness Tax, aimed at allowing American states to impose taxes on online purchases.
"A lot of small, fast-growing online firms work on very thin profit margins. An extra tax burden might simply wipe them out," Next chief executive Lord Wolfson told the Daily Mail. "For a country that is at the forefront of the internet revolution it would be an extremely backward step."
Notonthehighstreet.com co-founder Holly Tucker, Shop Direct's Alex Baldock, Ocado chief executive Tim Steiner, John Roberts of Appliances Online, N Brown chief executive Angela Spindler and Boden's Julian Granville have all put their signatures to the letter.
Among those backing the call for an online sales tax is Morrisons chief executive Dalton Philips. The British Retail Consortium is understood to be considering the proposal.