Scottish ministers are considering the introduction of an online sales tax to level the retail playing field and rejuvenate high streets.
The joint report from the Scottish Government and COSLA – the umbrella body for Scotland’s 32 local councils – has outlined a new action plan to regenerate town centres.
It says a taxation of digital sales in Scotland will be explored, with the aim of ensuring online businesses contribute to tax revenues alongside bricks and mortar firms.
It commits to looking at the UK Government’s consultation exploring the pros and cons of an online sales tax, which was published in February after the pandemic and highlighted how rapid technological advances are changing the way consumers shop.
Other actions include:
- To ensure town centre regeneration contributes to climate action by reducing emissions, investing in low carbon transport and creating more green spaces
- To make town centre services as accessible as possible to help reduce unnecessary car journeys and prevent climate change
- To incentivise entrepreneurship by delivering the ambitions set out in the National Strategy for Economic Transformation
- To use the planning system to limit out of town development and ensure the non-domestic rates system continues to support our net zero ambitions by providing reliefs for businesses generating more energy from renewable sources
- To require developers to install and optimise digital connectivity in new town centre housing developments and support community organisations delivering digital skills training
Community Wealth Minister Tom Arthur said: “This response has been developed in partnership with local government and recognises how vital town centres are for Scotland’s economic, environmental and social wellbeing.
“The actions in this report provide a framework to meet our ambitions and give communities the freedom and confidence to deliver locally. They will help improve our town centres following the pandemic and deliver net zero climate ambitions whilst promoting better planning and delivering enhanced digital capabilities for businesses and residents.
However, business groups have expressed concerns about the introduction of an online sales tax, warning that a Scottish-only online sales tax could negatively impact on businesses competitiveness and push up prices.
Click here to read to full report.