Calls to rethink Treasury proposal for an online sales tax

There is little support from the various professional bodies in their responses to the Treasury’s proposed online sales tax.  

The Chartered Institute of Taxation has challenged the case for introducing an online sales tax to fund new business rates reliefs noting that the government itself suspects that these reliefs will lead to higher commercial rents so benefiting landlords rather than retailers.

Gabby Donald chair of institute’s indirect taxes committee said: ‘Designing and implementing a brand new tax to remedy perceived unfairness in the business rates regime is a disproportionate way of addressing the challenges facing the high street. It is better to modernise the business rates system – something that is long overdue.’

Instead the CIOT suggests the government should consider whether it could modify the VAT system to generate the income necessary to fund business rates changes.

Ms Donald said: ‘An alternative is...