Tax and Fiscal Policy

An Online Sales Tax will create an administrative quagmire

IEA research discussed in The Times

New research authored by IEA Economics Fellow Julian Jessop, has been written up in The Times.

Julian’s research analyses the proposed ‘Online Sales Tax’, which the Treasury claims would raise £1-2 billion annually to reduce business rates for physical retailers.

However, Julian demonstrates that, with most retailers having both a physical and online presence, the measure will create significant confusion as to which sales should be taxed and prove difficult to administer.

Further, Julian explains how the tax burden will ultimately fall on consumers, not companies, compounding the already high cost of living.

Read the full analysis here.