Commons Sense

House of Commons · Ministers' Questions

Online Sales Tax

Tuesday 15 September 2020 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The Chancellor regularly discusses business rates reform with Cabinet colleagues.
  • The Government is committed to reviewing the system and considering an online sales tax.
  • The Minister is grateful for suggestions and will ask officials to engage with the member.

Topics (select to filter)

Questions & Answers

Q1 Alistair Carmichael Lib Dem Orkney and Shetland
Taxation
Context

The question stems from discussions on a range of topics related to business rates system reform, focusing on the introduction of an online sales tax. The right hon. Gentleman is concerned about the impact of delivery charges and lack of universal service in online shopping.

Question

What discussions has he had with Cabinet colleagues on introducing an online sales tax? Online shopping offers a range of choice and opportunities for many constituents but often comes with high delivery charges or refusals to deliver, making purchases unattractive. An online sales tax could provide a tax break for those delivering as a universal service with a single price across the country.

Answer from Jesse Norman

The Chancellor regularly discusses various topics, including business rates reform. The Government is committed to reviewing the system and considering the introduction of an online sales tax. I will ask officials to look at the suggestion for a tax break on deliveries provided as a universal service with a single price across the country.

Partly answered

Not addressed: The response does not commit to specific action or timeline regarding the implementation of an online sales tax that includes a delivery tax break.

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Q2 Alistair Carmichael Lib Dem Orkney and Shetland
Taxation
Context

The question is related to the previous one, focusing on how an online sales tax could incentivize sellers to offer a universal delivery service with a single price across the country.

Question

An online sales tax could provide a small tax break for those making online sales who deliver as a universal service with a single price across the whole country. Will the Minister consider this along with other considerations?

Answer from Jesse Norman

I am grateful for the suggestion and will ask my officials to engage with him on it. We are open to ideas, but we have already introduced a digital services tax in a different context.

Partly answered

Not addressed: The response does not provide a specific commitment or timeline regarding the implementation of an online sales tax that includes a delivery tax break.

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