As part of a review into business rates it is being reported that the Treasury could be set to announce a new online sales tax which will affect Amazon and other internet retail giants.
The proposals for an “excessive profits tax” on companies that have seen profits surge as a result of the crisis will be designed to claw back some of the money the UK has borrowed to help deal with the pandemic.
Amazon sales in the UK soared by 51% to almost £20 billion as lockdown restrictions forced people to buy online.
Delivery firms such as Deliveroo and online retailer Asos were also among those to see profits spike during the lockdowns of the past 12 months and are likely to be affected with any new tax.
The Sunday Times reported that leaked Treasury emails show tech firms and retailers have been summoned to a meeting later this month to discuss how an online sales tax could work.
A Treasury spokesman said: “We want to see thriving high streets, which is why we’ve spent tens of billions of pounds supporting shops throughout the pandemic and are supporting town centres through the changes online shopping brings.
“Our business rates review call for evidence included questions on whether we should shift the balance between online and physical shops by introducing an online sales tax. We’re considering responses now.”
