Treasury Considering Another New Consumer-Hitting Tax

Two weeks ago, Conservative Party Chairman Oliver Dowden proclaimed that taxes have reached a “high water mark” amid a cost of living crisis that’s seen the Treasury’s penny-pinching rise to a 28 year high. When asked by Sir Keir at PMQs today whether Boris still believes he and the Chancellor are “tax-cutting Conservatives”, the PM boldly replied “Yes, Mr Speaker, I certainly do!”. Guido presumes, therefore, that No. 10 & 11 will shortly be rejecting any suggestion of an online sales tax…

The online sales tax was first proposed by the Treasury in response to the proportion of retail sales conducted online rising seven-fold between 2006 and March 2020, accelerated by lockdown. In February the Treasury launched a public consultation on the proposals, which Guido has now spotted admits the tax would pile even more pressure onto hard-pressed consumers:

“the cost of an OST could be passed on to customers at a high rate.” 

The IEA puts simply:

“Given the extent of competition in today’s retailing sector, the costs of the online sales tax (and the administration costs incurred by businesses) would be passed on to consumers, who have arguably received quite enough hits in terms of higher prices recently.”

Guido’s sure that regardless of the Treasury consultation any Tory government serious about tackling a cost of living crisis and reducing consumer costs wouldn’t take these plans any further…

mdi-timer 30 March 2022 @ 14:02 30 Mar 2022 @ 14:02 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments