An internet tax?

In Industry News On

I recently received a letter from Devon-based independent retailer, Tristan Cook, owner of Sparkworld ltd, who, feeling very strongly about the demise of the high street, has written to Vince Cable.  Mr Cook considers the internet to be the main culprit contributing to the slow death of the high street as we know it. He argues that the current business set up of internet traders does not maintain a level playing field for all retailers.

In his opinion the main attraction of shopping through the internet is lower prices of goods and services (he doesn’t get involved in the issue of convenience of online shopping). Prices are lower since internet retailers pay less business rates (if any), lower rent (if any) and have smaller running and staff costs.

He argues that the government is also a loser in the current situation as it receives lower VAT on rent, running costs, less income tax from lower staffing levels and NI contributions. “The internet retailer has a competitive advantage of lower taxes and therefore can charge less; this also means lower VAT received by the government.”

The solution he suggests is an internet tax – which would not only create fairer trading conditions but also provide a substantial revenue stream which the country desperately needs at present.

An additional benefit of such a tax would be the requirement to register internet companies and to regulate them – protecting consumers to a greater degree from online fraud.

I feel that Mr Cook’s argument is a good one and its merits a discussion on one of our industry’s forums (and perhaps action in the future). I also welcome your views on this subject and will be very happy to publish them in the magazine. 

You may also read!

Tower to launch its biggest TV campaign

Tower, the small domestic appliances and housewares brand, is to launch its biggest multichannel marketing campaign to-date to promote

Read More...

Haier Europe expands with two new factories

Haier Europe, the number one global major appliance brand, has expanded its largest European production and export centre with

Read More...

Rangemaster upgrades fridge-freezer range

Rangemaster has upgraded all models in its American-style and French-door fridge-freezer collections, strengthening the brand’s growing freestanding range. The SXS,

Read More...

Mobile Sliding Menu

©2021 Innovative Electrical Retailing. Datateam Business Media Limited. All rights reserved.
Registered in England No: 1771113. VAT No: 834 8567 90.
Registered Office: 15a London Road, Maidstone, Kent ME16 8LY
open