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Digi-tax will just cement Amazon dominance

Amazon will escape handing any more money to the Treasury despite a new tax on digital services.

The online retailer titan will not have to pay a levy on direct sales, after initial proposals were watered-down. But now it seems it will simply pass on any charges it is obliged to pay.

Amazon has said it will simply the 2% charge on third-party revenues will be taken from sellers on its platforms in higher fees.

Business groups have accused the HMRC of designing a tax that simply cements Amazon’s market dominance and penalises smaller retailers using its platform.

Andrew Goodacre, chief executive of the British Independent Retailers Association, said: “All it has done is resulted in small sellers paying more and making less while Amazon gains further competitive advantage.”

The Times (£)

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