Asos and Curry’s among retailers to warn Sunak against OST
The news comes just a week after M&S also warned of the ‘potential damage’ such a tax would have on the high street
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A group of 11 retailers, including Asos, Currys, and Gymshark, have reportedly urged the government to abandon plans for an online sales tax warning that it would “hurt, not help the high street”.
According to The Telegraph, in a joint-letter to the chancellor the retailers noted that sales tax would be detrimental to consumers who are “already struggling to cope” with the highest inflation in 40 years.
It comes after the government’s consultation on whether to implement such a tax closed on Friday 20 May. The government said the idea behind the tax would see it utilised to help fund a reduction in business rates tax.
The retailers were also joined by Ocado, eBay, and The Very Group among the signatories.
The letter reportedly reads: “We believe an OST would… hurt – not help – the high street, and stifle retail innovation and investment. The burden of business rates on retail is too high and needs reforming, but an additional tax on a sector that is already overtaxed is not the answer.”
The news comes just a week after M&S also warned of the “potential damage” such a tax would have on the high street.
M&S CFO, Eoin Tonge, said the tax would “damage high streets further” as multi-channel retailers would likely cut their “least profitable” high street sites in order to help offset the cost of the new tax.
