2% ‘Amazon Tax’ to Save High Streets
- Digital Services Tax extended to include a ‘2% Amazon tax’
- Government minister Jake Berry promises extension to online retailers
- Tax on advertising revenue for media firms and platform fees for online marketplaces
- Excludes consumer payment from tax calculation
The UK government has announced plans to extend the Digital Services Tax (DST) to include a 2% tax on online retail in an effort to save Britain’s high streets. Jake Berry, high streets minister, confirmed that if international agreement cannot be reached, a 2% tax will be imposed on online retailers. The DST initially targeted media firms and search engines for a 2% tax on advertising revenue and online marketplaces for platform fees. However, Berry’s comments suggest the extension to online retail is now imminent. This decision follows chancellor Philip Hammond’s acknowledgement of retailers’ complaints about fairness in taxation between traditional and online businesses. Robert Hayton, head of UK business rates at Altus Group, emphasized the need for the introduction of this tax at the Spring Statement on 13 March to prevent further deterioration of high streets.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the government’s plan to extend the Digital Services Tax to include online retailers and quotes from relevant sources such as Jake Berry and Robert Hayton. It also explains the reasoning behind the decision and its potential impact on traditional retail businesses.
Noise Level: 3
Noise Justification: The article provides relevant information about the government’s plan to extend the Digital Services Tax to include online retailers to support traditional high street businesses. It includes quotes from a high-ranking official and an expert in the field, and discusses the potential impact on taxation and business rates. However, it could benefit from more detailed analysis of the long-term effects and possible consequences for both online and offline retailers.
Financial Relevance: Yes
Financial Markets Impacted: High streets retailers, online retailers, media firms, search engines, and online marketplaces
Financial Rating Justification: The article discusses the extension of a Digital Services Tax to include online retailers, which will impact various businesses in the financial sector such as high street retailers, online retailers, media firms, search engines, and online marketplaces. This taxation change can affect their revenue and business operations, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
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