Tesco has levied a 1% sales tax on online rivals such as Amazon.Boss Ken Murphy also joins bosses at Morrisons, Asda and Waterstones asking Chancellor Rishi Sunak to ask for a "level playing field" when it comes to taxes.They say the current system puts large land retailers at a disadvantage to online companies.Retailers have not had to pay business rates based on real estate since the outbreak.

But the tax will start again in xo April.Senior executives of 18 companies and groups have written to the Prime Minister to warn that revert to the old system. "It will hinder the recovery of the retail sector after the pandemic, which could put thousands of jobs at risk.The business rate is calculated by looking at the assessed value of the property and multiplied by the tax rate set by the government. The new tax rate will take effect at the beginning of the financial year on April 1.

According to figures from the National Statistical Office (ONS), full-year retail sales at physical stores in the 12 months ended December 31, 2020 fell 10.3% from £ 318.5 billion in 2019 to £ 285.8 billion.Call for tax A group of 18 bosses stopped asking for sales taxes online.But Tesco has a 1% tax. Last week, Amazon was criticized for paying less at business rates than British brick-and-mortar retailers.

The online retail giant's financial results revealed that UK sales in 2020 totaled $ 26.5 billion (£ 19.3 billion), a 51 percent increase from $ 17.5 billion in 2019.The researchers estimate that Amazon's overall business rates for 2020-2021 will be £ 71.5 million, just 0.37% of retail sales.Amazon insists it pays taxes and creates thousands of jobs in the UK.
Retail consultancy Altus Group said brick-and-mortar retailers will have to pay £ 8.25 billion in business rates by 2020 if they do not receive a tax holiday due to the outbreak.

It said the figure was calculated using the calculated value multiplied by the 2020 tax rate of 8.25 billion pounds, 2.9% of total retail sales, much higher than what Amazon paid.For example, Arcadia, which owns Topshop, Burton and Dorothy Perkins, would pay £ 91 million in business rates at 444 stores by 2020 if there were no tax holidays, Altus Group said.Amazon would not comment on the Altus Group and CRR calculations.An Amazon spokesperson said: "We have invested over £ 23 billion in jobs and infrastructure in the UK since 2010.

Last year we created 10,000 new jobs, and last week we announced 1,000 new internships. This continued investment helped contribute £ 1.1 billion in total taxes over 2019 - 293 million direct taxes." £ 854 million of indirect taxes A spokesman for the Treasury said: “We want to see a thriving avenue, which is why we have spent tens of billions of pounds supporting stores throughout the pandemic and supporting urban centers through the transformation of online shopping.

Our business rate review calls for evidence, including questions about whether we should balance our online and physical stores by introducing online sales tax. We are considering answers now and will update. Date a specific period
The 2020 spending review also confirms that the business rate multiplier will be suspended in 2021-22, saving UK businesses £ 575m over the next five years."