A bill designed to allow individual states to impose sales taxes on transactions even though the firms themselves may not have a physical presence in the area, according to an article in the Financial Times this morning.
The move has received support from traditional US retailers and it may attract the attention of politicians on this side of the channel currently examining the woes of the high street. A Department for Business Innovation and Skills Select Committee has invited comments from retailers and other interested parties to an inquiry into the retail sector and online shopping has been highlighted as a specific area of interest.
In one of its five key areas of concern the Committee said last month it wanted to examine the 'impact of online sales and direct sales on high street retailers'. The deadline for contributions passed last Monday, as reported here two weeks ago.
There have been growing calls in Britain from independent retailers for a 'level playing field' on tax and the issue is fast becoming central to the debate on the declining high street. They have complained that successive business rate tax hikes on shops have been crippling as sales suffer in the recession.
In the US, the Marketplace Fairness Act moved towards a vote in the Senate after receiving cross-party support last night to overcome a procedural hurdle, the FT said. It will allow states to collect sale taxes from shoppers in their regions in the same way as from physical stores.
It has met with opposition from online retailers led by eBay and anti-tax lobbyists.
Tags: Department for Business, Innovation and Skills Select Committee, online shopping, internet tax, ecommerce, etail, online retail, Marketplace Fairness Act, eBay, independent retailers, high street shops
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