Rishi Sunak, UK Treasury Secretary, plans to raise tax on purchases on line to level the competition between tech giants e-commerce and smaller businesses. After reviewing commercial rates, officials have accelerated this tax in recent weeks to include it as soon as possible.
It is possible that this so-called ‘Amazon tax’ is a broader restructuring of commercial tariffs, although the Chancellor confirmed that the final decision to include it will be announced in the next state budget. Second, This move is likely to prove controversial and comes after Joe Biden (President of the United States) make a global deal on how to make big technology worse.
Although the project plan has some basic principles, this is the option mentioned in the commercial rate review which would include minor adjustments rather than major rethinking – this is because ministers need more time to work on such proposals.
But when will this tax start being included on purchases? on line? It is expected to be announced in the spring of next year. although there are some rumors that a consultation was carried out before adding such tariffs to the Internet company. For example, if the rate is 2%, about two million pounds will be generated in a year.
On the opposite side, retailers fear that their business will move away from e-commerce despite including taxes. The reason for the delay in tariffs is because the Chancellor is waiting for the results of the global tax talks by the Organization for Economic Co-operation and Development (OECD).
So far, a resolution has been agreed to ensure that the United States tech giant pay more taxes in countries where they derive greater economic benefits.
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