News

No news on online delivery tax in Budget

Retailers do not yet know if they will face a new tax on online deliveries after the suggested measure was absent from today’s Budget. There have been rumours of such a tax since last summer with the idea resurfacing in national press at the weekend.

Mona Bitar, EY UK & Ireland consumer leader, called for clarity for retailers. “As the sector navigates post-pandemic recovery, greater certainty is needed in this area. With tax consultations deferred until 23 March, the sector will be hoping for more information then.”

Speaking before the Budget IMRG’s Justin Opie, managing director, and Andy Mulcahy, strategy and insight director, also said such a tax would need to be structured to avoid penalising smaller sellers.

Suggestions of a green tax on online deliveries were also redundant they said, since sustainability is already a key target for such players. “This is not an area that requires stimulation through taxation, as it is already a major point of focus for retailers and delivery operators. Pressure from customers is making sustainability a point of competition; those who operate with low environmental footprints, in a cost-effective manner from the customer perspective, will be far more attractive options for those customers.”

Image credits:
  • Shutterstock