UK Chancellor Working With US On New ‘Amazon Tax’ For Online Retail Giants

UK Chancellor Working With US On New ‘Amazon Tax’ For Online Retail Giants.

Chancellor Rishi Sunak says he will seek support from UK allies on a new tax for online retail giants, aiming to level the playing field between ailing British high streets and massive online companies like Amazon.

Multiple reports suggest the chancellor has spoken with new US Treasury Secretary Janet Yellen about the possible tax on the companies. Mr Sunak has said he hopes to make the issue a priority at the G7 summit in Cornwall in June, where he will meet his finance minister counterparts.

“One of my priorities in the G7 this year, which I’ve already started work on, is to try to get international agreement on a new way to tax these companies. I spend a lot of time talking to my finance minister colleagues around the world about this.”

Mr Sunak last year brought in a digital services tax, but there have been concerns that online retailers have merely been passing on the cost to independent sellers.

Conservative MP Gagan Mohindra (South West Hertfordshire) suggested during a debate in the Commons on Thursday that the Treasury should look at “wholesale reform” of business rates to help protect city centres and high streets.

He added: “Covid-19 has accelerated the change in our working and buying habits. I’d urge the Chancellor to grasp this opportunity for tax reform to ensure that all businesses have a level playing field.”

Online retailers have seen huge increases in sales during the lockdown, with Amazon reporting a 51 per cent increase in UK sales.

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