Tesco urges online sales tax to fund business rates cut

Tesco has saved £200m per year through energy efficiency

Tesco has called for a 2% online sales tax to help fund a 20% business rates cut.

The grocer said that the current system was damaging to UK communities and businesses and suggested that an online tax could take pressure off high streets being adversely affected by business rates.

In written evidence to the Treasury select committee which is investigating possible changes to business rates, Tesco, which pays around £700m a year in business rates, said that the government could make £1.5bn by establishing an online sales tax, which would not include small businesses. It suggested that the government use that resource to facilitate a 20% cut to current rates.

Subscription content

Please sign in now if you have a subscription or are already registered with us.

Retail Week

Register for free to continue reading

Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • Two free article views per calendar month on Retail-Week.com
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.