Half of retailers would back higher taxes for online retail
New research from Fourth reveals that around half of retailers would back higher taxes for online retail.
It seems that frustrations from trying to recoup 18 months’ worth of losses have caused retailers to push for government incentives that will level the playing field against giants such as Amazon, but are they looking at the businesses behind the giant?
According to the data 46% of retail leaders want higher taxes for online shopping to be introduced, 47% of retail leaders think the UK government should introduce extended shopping hours and 38% of retail leaders want government-funded vouchers to drive confidence back into the high street.
Higher taxes for online retail
It’s understandable that high street businesses are feeling a little left behind when compared to online businesses but would higher taxes hinder ecommerce giants themselves or would the sellers on these marketplaces take the hit? For many retailers, ecommerce came to the rescue in the midst of the pandemic, SMBs, in particular, began flocking to ecommerce channels to keep their own businesses afloat. If higher taxes were introduced who would really feel the effects?
Amazon, for example, has form for passing on tax, in August 2020 they instantly hiked fees by 2% passing on the Digital Services Tax to UK small businesses so what would stop this from happening again?
“Despite many leading brands now having an eCommerce presence, retail leaders are keen to see the government act swiftly to boost the physical retail industry ahead of restrictions lifting. While retail leaders are evolving the in-store experience to differentiate themselves and remain competitive, the future of retail is likely to look very different as a direct result of the pandemic with retailers fighting for talent and revenue. As part of the Build Back Better campaign the UK government needs to consider balancing the competitive advantage of online retail to give the British high street the chance to also thrive in a post-pandemic world.”
– Sebastien Sepierre, Managing Director – EMEA, Fourth
As has been said…. extra taxes just mean higher prices. The consumer always foots the bill.