Online Sales Tax 2020-09-15

2020-09-15

TAGS
Response quality

Questions & Answers

Q1 Partial Answer
Alistair Carmichael Lib Dem
Orkney and Shetland
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.
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.
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.
Assessment & feedback
The response does not commit to specific action or timeline regarding the implementation of an online sales tax that includes a delivery tax break.
Response accuracy
Q2 Partial Answer
Alistair Carmichael Lib Dem
Orkney and Shetland
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.
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?
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.
Assessment & feedback
The response does not provide a specific commitment or timeline regarding the implementation of an online sales tax that includes a delivery tax break.
Response accuracy