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VIEWPOINT ☛ WEB VERSION: Click Here


tax, just as their EU markets shrink through excessive red tape and costs following Brexit.


Amazingly, a UK Government spokesperson has said in response to the announcement from Washington: “Should the US proceed to implement these measures, we would consider all options to defend UK interests and industry.” Is this deeply misguided tax going to propel us into a trade war with our closest trading partner post-Brexit?


The online tax nightmare isn’t going to stop there. The UK’s business rates are the highest in Europe and hoover-up £25bn a year for the Government. To make up for lost income because of the current Covid business rates holiday, Chancellor Rishi Sunak was expected to announce a new 2 per cent Online Sales Tax (OST) on


all eCommerce purchases in his Spring Budget. This would include all sales from US companies selling to UK shoppers.


It’s rumoured Chancellor Sunak postponed the announcement of his new sales tax until he could gauge President Biden’s reaction. Judging from Washington’s proposed retaliation to the DST, we think he now has a pretty good idea what the reaction would be to a further online tax.


Far from helping “level the playing field” between High Street and online stores, online taxes dig up the entire pitch by forcing every sensible retailer with both physical and online stores to pay a new eCommerce tax, on top of whatever scheme eventually replaces business rates. They also alienate our closest trading partners.


homeofdirectcommerce.com | Direct Commerce 11


The US


Government is warning that it will slap tariffs of up to 25% on many key British exports, in retaliation for the UK’s new Digital Services Tax.


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