Amazon Hit With Online Sales Tax As government Hopes To Claw Back Money After Heavy Borrowing
Amazon and other internet retail giants could be hit with an online sales tax in a move designed to claw back money the UK owes after heavy borrowing during the pandemic.
Treasury sources confirmed Chancellor Rishi Sunak is considering targeting companies that have done well out of the pandemic in order to pay back UK Government debts incurred while supporting industries through the coronavirus crisis.
The move is being considered as part of a review into business rates following a consultation last year.
Amazon sales in the UK soared by 51% to almost £20 billion last year as lockdown restrictions buoyed the e-commerce giant, with people forced to buy online due to coronavirus restrictions.
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Delivery firms such as Deliveroo and online retailer Asos were also among those to see profits spike during the lockdowns of the past 12 months.
The Sunday Times reported that leaked emails showed Treasury officials had summoned tech firms and retailers to a meeting this month to discuss how an online sales tax could work.
The move could be part of a double raid on Amazon as the paper said that Downing Street officials were working up proposals for an “excessive profits tax” on companies that have seen profits surge as a result of the crisis.
