Ecommerce inspires push for new business rates in UK
With online sales gaining popularity in the United Kingdom, retailers are seeking ways to keep the playing field level for ecommerce and brick-and-mortal store operations. The British Retail Consortium (BRC) is currently pushing to change the way merchants are taxed, The Telegraph reported. The group argued that rate adjustments, such as taxing based on energy usage rather than property value, would help brick-and-mortar retailers stay competitive, explained The Guardian.
"Our fundamental premise is that something significant needs to change that will remove the disincentive we have at the moment to operate from property," Helen Dickinson, director general of the BRC, told The Guardian.
The group outlined three options that would help retailers operate alongside large ecommerce firms, such as Amazon.com, the news source added. These include:
- Rate discounts for merchants who pay UK corporation taxes
- Taxes based on energy usage to replace the business rates
- Discounted rates based on the number of staff employed
The BRC is still refining its recommendations. In the meantime, merchants in the retail industry have found innovative ways to use retail technology to keep customers interested in the store experience and to make shopping more convenient for consumers.
