New analysis from the TaxPayers’ Alliance reveals plans for an
online delivery tax could cost the average household at least £56
per year in unnecessary charges.
Reports suggest HM Treasury is considering introducing an online
sales tax, either with a 2 per cent levy on goods sold online or
a mandatory charge on consumer deliveries. Both proposals would
raise costs for consumers, conflict with changes to planning law
reforms and ignore changes in consumer behaviour. The poorest and
most vulnerable would also be more affected.
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Despite online deliveries being a lifeline for older and more
vulnerable people during the coronavirus crisis, analysis shows
households could see an extra £56 per year paid in tax because of
a 2 per cent levy for online purchases.
For those in the lowest decile of household incomes, an online
purchase levy would be particularly damaging. The poorest 10 per
cent of households lose almost half of their gross income to
direct and indirect tax, with the levy charging them an extra £20
per year in tax.
The second option the chancellor is considering is reportedly a
mandatory delivery charge. The delivery industry suggests that a
£2 charge could be levied, or 3 per cent of the value of a £62
shop. If this was applied for a monthly delivery, households
would pay an extra £24 per year in tax.
Duncan Simpson, research director of the TaxPayers' Alliance,
said:
"Online orders have been a lockdown lifeline for millions, but
now the chancellor is hoping to hit them with an unwanted
delivery tax.
"Hard-pressed consumers can't win. If people drive to the shops,
they're whacked with fuel duty and parking levies. Meanwhile, the
digital services tax will push up costs of online purchases, and
under these proposals the poorest taxpayers could also be charged
for online deliveries and returns too.
"The constant war on shoppers has got to stop."
