The Scottish Greens have joined Labour in resurrecting calls for an “Amazon Tax” on online-based retailers.
The Greens have also called for a new levy on supermarkets that would raise money for health purposes and stop retailers pocketing money raised through the minimum unit pricing policy.
Both parties argue that a new online tax is needed to rebalance trade in favour of high streets which are being hit by huge rises in business rates.
Scottish Labour leader Anas Sarwar said it is “not fair” for retail businesses to pay “30% to 40%” of their turnover on business rates, when online distribution centres pay only “2% to 3%.”
He promised to “make sure more of the cost pressures are put on the online giants in the distribution centres” and bring in “more reliefs for the individual businesses in town centres and high streets”.
Labour would abolish business rates altogether and create a new system designed in partnership with business that resets the balance, said Mr Sarwar.
“It shifts the balance away from the pressure being on the high street shops, which is rigged in favour of the online giants, and instead makes sure more of the cost pressures are put on the online giants in the distribution centres, and therefore more reliefs for the individual businesses in town centres and high streets.”
The Greens also say a surcharge should be added to business rates on operations such as online company distribution centres, “offsetting the economic damage caused by falling footfall” in town and city centres.
Scottish Greens co-leader Gillian Mackay said: “When huge global online retailers are making enormous profits, it is our high streets that are being hollowed-out, while local businesses are pushed to the brink.
“The Scottish Greens will build a tax system that is fair, progressive and fit for the future. To do that, we need to shift the burden off of working people and smaller businesses, and on to those causing the greatest economic harm.
“For years, companies like Amazon have taken more and more from our economy and communities while giving far too little back.
“They have been a root cause to the decline of our local high streets, piling pressure onto smaller retailers and sucking huge amounts of wealth out of Scotland’s communities.
“The Scottish Greens’ Amazon tax is about rebalancing that by supporting our local businesses and town centres. These aren’t just shops, they are community hubs and they make our neighbourhoods into thriving and better places to live.”
Supermarket tax
The Greens have also called for a levy on supermarkets that would raise money for health purposes and stop retailers pocketing money raised through the minimum unit pricing policy.
Co-leader Ross Greer told Daily Business: ” We know supermarkets now make more money now from selling cheap alcohol as a result of minimum unit pricing. That’s a good public health policy but it has actually increased supermarket profits.
“The Greens would introduce a public health levy, a small surcharge on non-domestic rates for those supermarkets to collect that money back in.
“The Fraser of Allander Institute has estimated that it would raise£60m to £80m and we could put that into our NHS to support the consequences of alcohol consumption.”
David Lonsdale, director of the Scottish Retail Consortium, said: “This notion of a new surtax on grocery retailers is alarming. The cost of operating a retail business is ultimately borne by customers and thwacking stores with an arbitrary Scotland-only surtax would be an unwarranted tax grab.
“Food retailers are striving to keep prices down despite colossal increases in employers’ national insurance contributions, a swathe of extra regulatory burdens, and increasing supply chain and commodity costs due to the situation in the Middle East.
“Recent government data shows Scottish retailers already pay considerably more in business rates than their English counterparts and a surtax would only exacerbate the problem.
“Politicians’ focus ought to be on growing Scotland’s economy and improving competitiveness, not shackling businesses with troubling new taxes which would have real world implications for retailers, customers, and stores.”
source