On 25 February the government launched a consultation considering the case for an Online Sales Tax. This was an open consultation exploring the design options as well as the economic impacts of such a tax. The Government conducted extensive engagement with a wide range of stakeholders, as well as internal research on the various design options. There was no additional expenditure on this outside of normal policy development costs, such as officials\u2019 time.<\/p>
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Following the consultation, the Government has decided not to introduce an online sales tax. This decision reflects concerns raised about its complexity and the risk of creating unfair outcomes between different retail business models. Stakeholders also expected it would lead to higher prices for consumers. The Government will shortly publish the Response to the Online Sales Tax consultation, explaining in detail the complexities of implementing such a tax.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4399", "label" : {"_value" : "Biography information for Victoria Atkins"} } , "answeringMemberConstituency" : {"_value" : "Louth and Horncastle"} , "answeringMemberPrinted" : {"_value" : "Victoria Atkins"} , "dateOfAnswer" : {"_value" : "2022-11-22", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-11-22T17:07:26.897Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-11-17", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Home Shopping: Taxation"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, how much money his Department has spent on (a) staff activity, (b) external research and advice, (c) public consultation and (d) stakeholder engagement related to the proposed introduction of an Online Sales Tax since the start of the 2021-22 financial year.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/1536", "label" : {"_value" : "Biography information for Emily Thornberry"} } , "tablingMemberConstituency" : {"_value" : "Islington South and Finsbury"} , "tablingMemberPrinted" : [{"_value" : "Emily Thornberry"} ], "uin" : "89772"} , {"_about" : "http://data.parliament.uk/resources/1543513", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1543513/answer", "answerText" : {"_value" : "
As announced at Autumn Statement 2022, the Government has decided not to introduce an online sales tax. This decision reflects concerns raised about its complexity and the risk of creating unfair outcomes between different retail business models. Stakeholders also expected it would lead to higher prices for consumers.<\/p>
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At Autumn Statement 2022 the Government announced a package of support worth £13.6 billion to protect businesses as they transition to their new bills at the business rates revaluation. This includes a freeze to the multiplier for 2023-24, which will benefit all ratepayers, and a generous Transitional Relief scheme worth £1.6 billion over the next 3 years which will support businesses facing bill increases at the revaluation. The Government is also delivering significant reform to the system by scrapping downwards caps, which restricted falls in bills at previous revaluations. This is expected to benefit around 300,000 ratepayers who will see a full fall in their bills from 1 April 2023.<\/p>
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Furthermore, through the Energy Bill Relief Scheme (EBRS), the Government will provide a discount on wholesale gas and electricity prices for all non-domestic consumers (including UK businesses, the voluntary and public sectors).<\/p>
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This is a temporary measure that will protect them from soaring energy costs and provide them with the certainty they need to plan through the acute crisis this winter. An HMT-led review of the EBRS will determine support for UK non-domestic energy consumers after March 2023, the results of which will be published in due course.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4726", "label" : {"_value" : "Biography information for Baroness Penn"} } , "answeringMemberPrinted" : {"_value" : "Baroness Penn"} , "dateOfAnswer" : {"_value" : "2022-11-28", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-11-28T17:21:18.333Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-11-17", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Home Shopping: Taxation"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask His Majesty's Government what steps they are taking to introduce (1) a financial support mechanism, and (2) an online sales tax, for small and medium sized supply chain businesses.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/1796", "label" : {"_value" : "Biography information for Lord Taylor of Warwick"} } , "tablingMemberPrinted" : [{"_value" : "Lord Taylor of Warwick"} ], "uin" : "HL3530"} , {"_about" : "http://data.parliament.uk/resources/1490336", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1490336/answer", "answerText" : {"_value" : "
The Business Rates Review reaffirmed the importance of business rates for raising revenue for essential local services. The review concluded there is no alternative which would raise sufficient revenue to replace business rates without significant trade-offs. The review delivered meaningful reform to the system, reducing the burden of business rates with a package of changes worth £7 billion to business over the next five years and committing to more frequent revaluations from 2023, which will make the system fairer and more responsive for all ratepayers.<\/p>
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In the final report of the Business Rates Review, the Government also announced that it would continue to explore the arguments for and against an Online Sales Tax, the revenue from which would be used to provide business rates relief for in-store retail. The consultation, which was published on 25 February and ran for 12 weeks, has now closed.<\/p>
<\/p>
The Government conducted extensive engagement with a wide range of stakeholders and is currently reviewing the feedback received. It will publish a response to the consultation on the Government\u2019s website in due course.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4517", "label" : {"_value" : "Biography information for Lucy Frazer"} } , "answeringMemberConstituency" : {"_value" : "South East Cambridgeshire"} , "answeringMemberPrinted" : {"_value" : "Lucy Frazer"} , "dateOfAnswer" : {"_value" : "2022-07-25", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "38613"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-07-25T09:00:51.107Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-07-18", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Home Shopping: Taxation"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of a total online sales tax exemption for SMEs, regardless of the type of business and value of remote or online sales they transact.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/3932", "label" : {"_value" : "Biography information for Dr Dan Poulter"} } , "tablingMemberConstituency" : {"_value" : "Central Suffolk and North Ipswich"} , "tablingMemberPrinted" : [{"_value" : "Dr Dan Poulter"} ], "uin" : "38614"} , {"_about" : "http://data.parliament.uk/resources/1489347", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1489347/answer", "answerText" : {"_value" : "
The Government announced at the Autumn Budget 2021 that it would continue to explore the arguments for and against an Online Sales Tax, the revenue from which would be used to provide business rates relief for in-store retail. The consultation, which was published on 25 February and ran for 12 weeks, has now closed.<\/p>
<\/p>
The Government conducted extensive engagement with a wide range of stakeholders and is currently reviewing the feedback received. It will publish a response to the consultation on the Government\u2019s website in due course.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4517", "label" : {"_value" : "Biography information for Lucy Frazer"} } , "answeringMemberConstituency" : {"_value" : "South East Cambridgeshire"} , "answeringMemberPrinted" : {"_value" : "Lucy Frazer"} , "dateOfAnswer" : {"_value" : "2022-07-19", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-07-19T07:16:16.153Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-07-14", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Home Shopping: Taxation"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what progress his Department has made on the Online Sales tax policy consultation following that consultation's closure.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4797", "label" : {"_value" : "Biography information for James Murray"} } , "tablingMemberConstituency" : {"_value" : "Ealing North"} , "tablingMemberPrinted" : [{"_value" : "James Murray"} ], "uin" : "36912"} , {"_about" : "http://data.parliament.uk/resources/1404697", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1404697/answer", "answerText" : {"_value" : "
At Autumn Budget 2021, the Government announced that it will continue to explore the arguments for and against an Online Sales Tax (OST). No decisions on whether to proceed with an OST have yet been made. If implemented, the revenue from an OST would be used to provide business rates relief for in-store retail. The consultation will launch shortly.<\/p>
<\/p>
The Government would welcome views and evidence from a range of stakeholders, including small businesses and booksellers. Details of how interested stakeholders can engage with the process will be published alongside the consultation.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4169", "label" : {"_value" : "Biography information for Viscount Younger of Leckie"} } , "answeringMemberPrinted" : {"_value" : "Viscount Younger of Leckie"} , "dateOfAnswer" : {"_value" : "2022-01-31", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-01-31T17:13:34.913Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-01-19", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Home Shopping: Taxation"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask Her Majesty's Government what plans they have to introduce an online sales tax; and, as part of any such plans, whether they intend to hold consultative forums with small businesses, including booksellers.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/347", "label" : {"_value" : "Biography information for Baroness Merron"} } , "tablingMemberPrinted" : [{"_value" : "Baroness Merron"} ], "uin" : "HL5551"} , {"_about" : "http://data.parliament.uk/resources/1402900", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1402900/answer", "answerText" : {"_value" : "
At Autumn Budget 2021, the Government announced that it will continue to explore the arguments for and against an Online Sales Tax (OST), the revenue from which would be used to provide business rates relief for in-store retail. The consultation will launch shortly.<\/p>
<\/p>
No decisions on whether to proceed with an OST have yet been made. It is the Government\u2019s intention to use the forthcoming consultation to consider in detail the issues surrounding proposals for an OST. This will include exploring the range of products, both physical and digital, which are sold online, including books.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4169", "label" : {"_value" : "Biography information for Viscount Younger of Leckie"} } , "answeringMemberPrinted" : {"_value" : "Viscount Younger of Leckie"} , "dateOfAnswer" : {"_value" : "2022-01-25", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-01-25T17:59:55.873Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-01-13", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Home Shopping: Taxation"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask Her Majesty's Government whether they have considered the introduction of an online sales tax for the purpose of levelling the playing field between high street and online retailers, with particular regard to the sale of books.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/3391", "label" : {"_value" : "Biography information for The Earl of Clancarty"} } , "tablingMemberPrinted" : [{"_value" : "The Earl of Clancarty"} ], "uin" : "HL5381"} , {"_about" : "http://data.parliament.uk/resources/1360249", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1360249/answer", "answerText" : {"_value" : "
The Government published a Call for Evidence on 21 July 2020, as part of its Fundamental Review of Business Rates, to gather views from stakeholders on all elements of the Business Rates system and alternatives, including an Online Sales Tax.<\/p>
<\/p>
Officials engaged with a broad range of stakeholders including online retailers as part of that process.<\/p>
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The Government provided a summary of responses to the Call for Evidence in March 2021. The review will conclude later this year.<\/p>
<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4517", "label" : {"_value" : "Biography information for Lucy Frazer"} } , "answeringMemberConstituency" : {"_value" : "South East Cambridgeshire"} , "answeringMemberPrinted" : {"_value" : "Lucy Frazer"} , "dateOfAnswer" : {"_value" : "2021-10-21", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-10-21T14:23:21.473Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-10-15", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Home Shopping: Taxation"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what discussions officials in his Department have had with representatives of online retailers on online sales taxes.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4133", "label" : {"_value" : "Biography information for Andrew Bridgen"} } , "tablingMemberConstituency" : {"_value" : "North West Leicestershire"} , "tablingMemberPrinted" : [{"_value" : "Andrew Bridgen"} ], "uin" : "57036"} , {"_about" : "http://data.parliament.uk/resources/1078582", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1078582/answer", "answerText" : {"_value" : "
I recently discussed the merits of an online sales tax in evidence to a joint session of the House of Commons Housing, Communities and Local Government Select Committee and Treasury Select Committee, to inform an inquiry into High streets and town centres in 2030.<\/p>