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Asda has reportedly told the government that introducing an online sales tax (OST) will harm retailers and shoppers that are already affected with rising inflation, according to The Daily Express.
The supermarket chain was one of a number of retail groups to meet with Lucy Frazer, the financial secretary to the Treasury and the minister responsible for tax policy.
The Government is evaluating responses to the introduction of an OST, which it closed in May.
John Lewis also reiterated its opposition to an OST, and Amazon and eBay are said to have warned Frazer it would harm the prospects of over 360,000 small to medium sized enterprises that use them to trade online.
Asos, Tesco, Sainsbury’s, Co-op, Morrisons and Kingfisher are pro-tax and believe it could fund cuts to business rates.
A Treasury spokesman said that the “Government’s review of business rates will see £7bn of support provided to reduce the impact of the tax over the next five years.
“We have not decided whether to proceed with an online sales tax. The purpose of the consultation was to consider the design options and economic impacts of such a tax and explore arguments for and against.”
