Real estate advisory firm Altus Group says that for every £100 earned by large retailers in Great Britain (excluding non-store sales and fuel) £2.91 is owed to local councils in business rates
Traditional retailers are paying 755% more in business rates than their digital competitors, according to new analysis.
Real estate advisory firm Altus Group says that for every £100 earned by large retailers in Great Britain £2.91 is owed to local councils in business rates.Estimates suggest that a revenue-based online sales tax of 1% for UK customers, above an allowance of £2m for smaller firms, could raise around £1bn a year.
Robert Hayton, UK president at Altus Group, said:"Ringfencing that revenue and targeting it to actually cut rates for retail, leisure and hospitality premises could lead to a reduction in rates of about 9%."It comes just days after the government closed a consultation into the possible introduction of a digital sales tax as a way to pay for a reduction in business rates.
The world's tax authorities have been trying for years to decide how to handle large online-only companies, such as Amazon, who officially report their British retail sales in low-tax jurisdictions.
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