March 7, 2021

UK to discuss tax hikes with major technology companies advanced during epidemics

The Sunday Times reports that the UK government is weighing in on tax increases for advanced technology companies and online retailers such as Amazon.com Inc. during epidemics.

According to leaked emails seen by the newspaper, treasury officials summoned technology companies and retailers to discuss how an “online sales tax” works. Meanwhile, the Downing Street policy division said its gains were due to the Govt-19 crisis, the newspaper said.

No tax hikes are expected in the March 3 budget, but senior government sources told the Sunday Times that they could come later this year as part of a UK effort to reduce debt.

With the budget deficit soaring to 400 400 billion ($ 550 billion) this year, President Rishi Sunak is pushing to try to tackle the deficit, while at the same time preventing any economic recovery.

Companies that could be affected by a single Govt tax include online retailers such as Amazon and Azos PLC, food distribution companies Okado Group PLC, Just Eat Takeaway and Delivery, parcel companies and major supermarkets, the newspaper said.

UK politicians have long talked with online retailers about the need to help brick and mortar shops, especially when struggling to compete during epidemics. Sunak had been overseeing plans for an online sales tax last July, while a senior UK tax official told lawmakers in January that the new value-added tax rules for online retailers would bring in an additional மில்லியன் 300 million (41 11,411 million).

The government is sticking to its election promise not to raise taxes on wages and sales in next month’s budget, someone familiar with the matter told Bloomberg News last week. Sunak will announce a series of policies designed to expand the Farlow and other business support programs, which expire in April, and to showcase the “benefits of Brexit”.

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