Amazon has warned that a UK online sales tax will unfairly punish small businesses that use its platform.
John Boumphrey, Amazon’s UK country manager, told a government roundtable yesterday that a 1% levy will hit SMEs that sell products on its platform.
Other online sellers also attended the summit, with Ebay also warning that a sales tax would negatively impact its users’ business, Sky News reported.
According to the report, other participants included Just Eat Takeaway, ASOS and Currys.
A spokesperson told Sky that a decision on whether to go ahead with the tax has yet to be made.
“The aim of the recent consultation was to examine the design options and economic impacts of such a tax and to explore the arguments for and against.”
Traditional merchants, meanwhile, continued their calls for a complete overhaul of the business pricing system.
The Retail Jobs Alliance (RJA) said this week that a rate cut for all retailers would result in a tax cut for 197,000 stores across the country.
He wants reduced business rates for retail to be funded by an online sales tax, after complaining for years that the system was skewed in favor of online shopping.