Inside the Australian and New Zealand book industry

Image. Advertisement:

BA says UK government’s digital services tax ‘a step in the right direction’

The Booksellers Association (BA) has welcomed the UK government’s decision to introduce a digital services tax on big tech companies from next April, but says it does not resolve the bigger issues facing physical retailers, reports the Bookseller.

The tax will apply to companies with digital revenue exceeding £500 million (A$889m), when more than £25 million (A$44.5m) is earned from UK users. Last year, the BA urged the government to introduce the so-called Amazon tax to help ‘rebalance the playing field’ between physical and online retailers, and has also long called for an overhaul of the business rates system.

BA managing director Meryl Halls said the tax is a step in the right direction, however she noted that physical bookstores and other high street retailers still bear a disproportionate tax burden, paying £2.30 (A$4.10) in rates for every £1 (A$1.78) in corporation tax. ‘Though the digital services tax is not intended to solve the iniquitous business rates dilemma, the BA will continue to press the government to reform the whole business taxation system so that both the consumer and the UK’s high streets benefit,’ said Halls.


Category: International news