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Morrisons Calling For On-Line Sales Tax

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But then most people have to go shopping to get their food...

http://www.telegraph...-sales-tax.html

The chief executive of Britain's fourth biggest supermarket, which is launching a joint venture with Ocado in the new year, has said that the tax imbalance between internet and high street retailers is illogical and is damaging Britain's town centres. He has joined other top retailers in demanding a sales tax on online retailers.

"We're moving into the online space, so we'll have to pay our contribution," Mr Philips told The Daily Telegraph. "As a country, we need to look at how we're going to tax retailers in general wherever they operate, because we've all got to contribute to society, but one can't be disadvantaged over the other."

He added: "I'm not into intervention for intervention's sake but you've got to have a level playing field. As more and more sales migrate online, it seems to me intuitive that you would tax the online channels as well. It's an issue we're going to have to face."

Mr Philips argued that there was "no logic" to the tax system any more. The rates "just go up and up… and what's that going to do to our town centres?" he said. "It's a massive disadvantage to the bricks and mortar retailer."

Retailers, led by Sainsbury's boss Justin King and Top Shop tycoon Sir Philip Green, have complained that business rates – based on property rents – have jumped 13pc in three years while internet firms are exempt. Wm Morrison paid £240m in business rates last year.

My bold.

Just like the other thread this morning on rents being unaffordable this lot are again completely missing the point. Rents keep rising putting bricks and mortar as a distinct disadvantage to on-line.

Solution introduce a tax on online sales.

Someone should string some of these muppets up!!

The solution is obvious but the high rental cartel must be protected at all costs..

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But then most people have to go shopping to get their food...

http://www.telegraph...-sales-tax.html

My bold.

Just like the other thread this morning on rents being unaffordable this lot are again completely missing the point. Rents keep rising putting bricks and mortar as a distinct disadvantage to on-line.

Solution introduce a tax on online sales.

Someone should string some of these muppets up!!

The solution is obvious but the high rental cartel must be protected at all costs..

Morrisons might not object, but I, as a customer, would.

**** Morrisons. If they want to put online stores out of business, that will place greater demand on, and for, shops, and in a free market that will force their rent up. What goes around comes around.

Enough of market manipulation through taxation. let the dinosaurs die and let the consumer buy without yet more taxation.

I am minded to boycott Morrisons now. But their last store in my town closed, though Tesco seemed to thrive on the opposute side of the street. Now they are returning to my town by taking over the empty HMV store. I bet they are getting it cheap because other shops are closing...

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Retailers, led by Sainsbury’s boss Justin King and Top Shop tycoon Sir Philip Green, have complained that business rates – based on property rents – have jumped 13pc in three years while internet firms are exempt.

Wrong. The on-line retailers will operate distribution centres and pay business rates on those. If their rates, etc., are lower, that is because they are satisfying customer demand while keeping their property overheads low... i.e. running a more efficient business.

To put it another way, why should online businesses also pay rates, plus an on-line tax, when the shops have the advantage of in-street showrooms?

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Level playing field - LOL, Supermarket's whole businesss plan is based around creating an unlevel playing field, utilising economies of scale, large political donations for preferrential legislation, squeezing out competition.

Time to turn my back on these companies even more than I am already.

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seems to me, they want a tax on innovation.

Nimbys are present in the dinosaur business community, as they are in the housing market.

I dont hear them calling for tarrifs on their Chinese Imports, or their outsourced to India IT.

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Amazon are pushing for this as well.Ebay are fighting it.Amazon cant compete very well with small sole traders and now a lot of warehouses are opening up to multiple powersellers Amazon is struggling.

The internet is the one place the small guy can still take on the big companies and that's why they want to stop it.

What this country needs is many more sole traders selling just under the VAT threshold to undercut these companies who have fleeced consumers for years.

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What this country needs is many more sole traders selling just under the VAT threshold to undercut these companies who have fleeced consumers for years.

We get all our fruit and veg really cheap from good old local market. Sackfulls of stuff a fraction of supermarket prices. Couldn't care less if the traders are dodging tax either. Anything that cuts the insane living costs in this country is good. Sod the bankers watering down our money with cheap credit and QE.

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Philip Green calling for people to pay more tax really is comedy gold.

The contempt for the Little People just oozes out of a proposition like this.

Edited by Nuggets Mahoney

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It's not clear from the quote whether he's calling for fair taxation (as in, close loopholes that avoid paying VAT) or an additional tax that would affect online sales over and above VAT.

If the latter then I'll join in the HPC chorus condemning him. But it seems unlikely he's speaking from self-interest, given that most of what Morrisons sells is zero-rated.

There's a fair argument about the VAT+offshore anomaly that penalises online retailers that don't move offshore. Maybe a workaround for that would be an online-sales tax that isn't VAT, but that replaces VAT in its entirety. Put UK companies on a level playing field with foreign competitors.

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Amazon are pushing for this as well.Ebay are fighting it.Amazon cant compete very well with small sole traders and now a lot of warehouses are opening up to multiple powersellers Amazon is struggling.

The internet is the one place the small guy can still take on the big companies and that's why they want to stop it.

What this country needs is many more sole traders selling just under the VAT threshold to undercut these companies who have fleeced consumers for years.

traders, (any type) that are not VAT registered, therefore cant claim back the VAT on their purchases, thus making them UNCOMPETITIVE for VAT registered customers to buy from.

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Of course the big boys on the internet don't mind an online sales tax, they will just package it into some fake losses and use it to offset their corporation tax liability. Their minnow competitors online won't be able to do the same.

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Morrisons might not object, but I, as a customer, would.

**** Morrisons. If they want to put online stores out of business, that will place greater demand on, and for, shops, and in a free market that will force their rent up. What goes around comes around.

Enough of market manipulation through taxation. let the dinosaurs die and let the consumer buy without yet more taxation.

I am minded to boycott Morrisons now. But their last store in my town closed, though Tesco seemed to thrive on the opposute side of the street. Now they are returning to my town by taking over the empty HMV store. I bet they are getting it cheap because other shops are closing...

+1 agreed. Why use tax to distort competition. Retail as we know it is changing through innovation..

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traders, (any type) that are not VAT registered, therefore cant claim back the VAT on their purchases, thus making them UNCOMPETITIVE for VAT registered customers to buy from.

All of my customers are consumers not business so being under the VAT threshold saves them.

Morrisons is talking about business that serves consumers online,its those the big boys are after.

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seems to me, they want a tax on innovation.

Nimbys are present in the dinosaur business community, as they are in the housing market.

I dont hear them calling for tarrifs on their Chinese Imports, or their outsourced to India IT.

+1

If they want to 'level the playing field' we could just reintroduce Retail Price Maintenance

http://en.wikipedia.org/wiki/Resale_price_maintenance

Of course, that would also put smaller retailers on a similar footing to the supermarkets and would act as an indirect tariff on cheap imports. Somehow I don't think that is what Morrisons, Green and all the other members of the supermarket cartels have in mind.

BTW the online sales tax proposals don't just threaten small online retailers but also manufacturers who sell direct to consumers online.

Edited by stormymonday_2011

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this is to do with business rates however, theyre basically saying business rates are killing us so we need to introduce something that will kill everyone else as well and level the playing field.

its completely stupid to call for raising taxes on others rather than reducing taxes for themselves.

theyre saying we cant compete with one arm tied behind our back so lets tie everyones arm behind their back and then things will work much better.

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....so as they can't take away their customers, so lets increase their taxes instead, giving them even less money to spend, so they spend less or find other new inventive ways of avoiding it.......everyone can play at that game. ;)

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Morrisons seem to be struggling. Strategy is all over the place. They only recently have developed an online strategy. Years behind the others.

Edited by Ash4781

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In a straight choice I'd much rather get rid of all sales taxes. Difficult to administer, lots of avoidance, badly effects low earners. I'd also scrap business rates.

Typical attitude in this country - someone is doing better than you so slap them down. Rather than take an option that makes everyone happier.

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Surely, if the business rates are too high and rents are too high, then the solution is for lower rents and lower business taxes, not new taxes? Why do these large companies insist on having so many outlets and paying so much rent?

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Surely, if the business rates are too high and rents are too high, then the solution is for lower rents and lower business taxes, not new taxes? Why do these large companies insist on having so many outlets and paying so much rent?

Maybe because having some rent is better than no rent at all. ;)

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If they want to 'level the playing field' we could just reintroduce Retail Price Maintenance

First you'd have to leave the EU.

Then you'd have to explain how making people pay more for most things they buy would make them better off.

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All of my customers are consumers not business so being under the VAT threshold saves them.

Morrisons is talking about business that serves consumers online,its those the big boys are after.

Not sure how your customers save money unless what you are saying is that you offer your goods cheaper because you're not VAT registered.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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