The ACS has urged the government to reduce business rates from retail properties, with its submission highlighting the imbalance in how businesses are taxed.
According to the ACS physical stores have been at a disadvantage to online stores therefore the funds from a proposed online sales tax could supplement the reductions in business rates.
As a result, the association has included recommendations including: making click and collect order exempt from online sales tax, as it encourages visits to physical stores.
Other recommendations include basing online sale tax on revenues rather than a flat fee, excluding business to business sales from online sales tax and ensuring smaller business are exempt from online sales tax.
“An online sales tax will help businesses trading on high streets, towns and villages across the UK to invest and grow, benefiting local communities, but it is just one of many changes needed to the business rates system,” ACS CEO James Lowman.
“We urge the Government to consider the online sales tax and will continue to work with officials on the detail of the policy and the Non-Domestic Rates Bill that was announced in the Queen’s Speech earlier this month.”