Online Firms Like Amazon Face Higher Taxes to Help Struggling High Streets, Philip Hammond Hints, but Will it Put Up Prices?

The Sun cited Associate Director of the Center for Technology & Innovation Jessica Melugin on Internet Sales Tax.

“But experts have warned that even if Amazon does get asked to pay more tax – it’s the consumer that will likely end up paying more.

“John O’Connell, CEO of the Taxpayer’s Alliance, said today that it would punish the poor. He said: “It would be wrong to introduce new taxes when the current tax burden is already at a 49-year high and growth is sluggish.”

“What’s more, the notion of a level playing field is merely a fig leaf, as a new Tech Tax would actually just make products more expensive for hard pressed families who rely on cheaper deals online. Why should people buying online have to pay both VAT and a special online tax?”

And Jessica Melugin, the associate director of the Center for Technology & Innovation at the Competitive Enterprise Institute said earlier this year: “The problem with Internet sales taxes is that they’re anti-competitive and would likely be experienced as a tax hike on consumers.”

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