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Friday, February 3, 2023

The United Kingdom’s government studied an ‘Amazon tax’ in Barcelona but parked it because of its “complexity”

Amazon Trucks In London In A December 2021 Photo.
Amazon trucks in London in a December 2021 photo.Dan Kitwood (Getty Images)

The United Kingdom government opened a consultation period last February about the possibility of raising rates and taxes on sales made over the Internet., One of the realities considered in this rethinking of the situation was the growing disadvantage in which traditional businesses found themselves in the face of the unstoppable disruption of a new economy. This is one of the reasons that has led Barcelona to study, design and implement (scheduled for March 2023), popularly known as dish amazon, which also wants to fight against the pollution and congestion caused by home delivery of packages. This autumn, the United Kingdom put the project on hold due to its “complexity” and to avoid “unwanted distortions”.

The report, which preceded the government’s consultation in the United Kingdom, said, “Some retailers with a physical presence on the high street believe the sector has been stifled by a tax burden that is overwhelming its digital competitors.” Very little in comparison.” “The Government recognizes the value that main roads and town centers provide, as places to live and work and places to visit. These centers have continually evolved, and the Executive’s willingness to intervene in the emergence of innovative businesses No. But at the same time, it is important to maintain response capability,” the text said.

However the study wanted to be extremely detailed, and analyze the fallout or distribution of a new tax on each of the digital commerce players – Internet sales only, or sales made by phone or email? Online reservation and payment and collection in store? Tax only for the wholesaler, or for large parcel operators as well?-, refusing to pay as much attention to the environmental impact of digital commerce as other countries. Internationally, it has been proposed to impose a flat rate of delivery (fixed rate for delivery of goods to private addresses), including in New York or Paris. This pointed to potential environmental benefits, such as cleaner air or less congested traffic. But, on the other hand, if an online sales tax encourages purchases in physical commerce, with personal travel requirements, as opposed to home delivery, the environmental impact may be contrary to that objective. In any case, there is evidence Whether this fixed rate of distribution brings environmental benefits is still unclear”, the report concludes.

Finally, the crisis came to a head last September, when then-hapless Prime Minister Liz Truss approved a historic tax cut that spooked the markets, slashed the value of the pound sterling and made public debt more expensive, Rishi Sunak’s The new government was forced to present a new budget plan which meant more fiscal pressure and further cuts in public expenditure. In compensation, a proposal to tax digital commerce was put in a drawer: “After opening a consultation process, the government has decided not to introduce an online sales tax. was a consideration made. The decision responds to concerns raised by some participants in the consultation. The complexity of the new tax, and the risk of causing unintentional and unfair distortions between different business models, have been conclusive”, a debate by the Sunak executive explained the justification for the closure, which in any case is still latent in the Kingdom. joint.

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World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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