Online Retail Giant Faces Potential Sales Tax Amidst Pandemic Boom

  • Amazon’s tax to turnover ratio dropped to 0.37% in 2020
  • Sales increased by more than 51% in the UK last year
  • Bricks-and-mortar retailers paid around 2.3% of annual sales in business rates
  • Amazon’s UK estate estimated to have £71.5m in business rate liabilities
  • Government considering imposing a sales tax on the conglomerate

Amazon’s tax to turnover ratio fell to 0.37% in 2020, despite a significant increase of over 51% in UK sales compared to the previous year. Brick-and-mortar retailers paid around 2.3% of their annual sales in business rates. Amazon’s entire UK estate, including fulfilment centers, research and development centers, corporate offices, Amazon Lockers, Whole Foods Market stores, and delivery stations, had an estimated £71.5 million in business rate liabilities at the start of the financial year. The government is considering imposing a sales tax on the conglomerate and plans to review business rates before the annual Spring Budget. Robert Hayton, UK president of Property Tax at Altus Group, stated that Covid-19 accelerated online sales and emphasized the need for fairness in addressing the disparity in tax ratios. He added that any additional revenue raised should be ring-fenced.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Amazon’s tax to turnover ratio, sales figures, and the government’s consideration of imposing a sales tax on the company. It also includes quotes from an expert in the field. However, it could provide more context on the specifics of the proposed sales tax and the potential impact on other retailers.
Noise Level: 3
Noise Justification: The article provides relevant information about Amazon’s tax to turnover ratio and its sales growth in the UK, as well as mentions the government’s consideration of imposing a sales tax on the company. However, it lacks analysis or exploration of long-term trends or consequences, and does not offer actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: UK retail and online shopping markets
Financial Rating Justification: The article discusses Amazon’s tax to turnover ratio, sales figures, and the potential imposition of a sales tax on the company by the UK government, which could impact the financial markets in the UK retail and online shopping sectors.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk