Survey shows ‘overwhelming support’ for online sales tax

Most landlords and retailers are in favour of some form of online sales tax to take the pressure off business rates, claims a new survey.

According to property firm Colliers, while a whopping 89 percent were in favour of some form of online sales tax, just 11 percent of respondents said they did not support an online sales tax.

About 54 percent agreed that items that are sold online but delivered via click and collect should be subject to additional charges, shows the survey’s findings. 

Respondents gave a range of answers, from increasing the VAT rate on all goods to introducing a delivery tax to the customer, and bringing in local business taxes on profit on being asked what alternatives to an online sales tax they would support, reports said.

The survey was carried after government announced a consultation on the proposal for an online sales tax in February.

The consultation, which closes on 20 May, was launched after retailers demanded a level playing field and a tax system that does not penalise bricks-and-mortar high street players. If implemented, the tax would be used to fund reductions in the business rates for retailers with properties in England and to fund block grants for Wales, Scotland and Northern Ireland.

“Although our survey is a snapshot … it certainly seems there is overwhelming support to bring in some sort of online sales tax to try and level the playing field and take the full burden of business rates off bricks-and-mortar retailers,” John Webber, head of business rates at Colliers, said.

“We are not saying an online sales tax will solve all the issues facing the high street, and there are several grey areas as our survey shows. However, given the increasing trend of buying online – a trend that was amplified during the pandemic and looks likely to continue – it is only right that we should try and rebalance the system and create a fairer playing field for all.”