British lawmakers are exploring levying an extra tax on companies that benefited from COVID-19 and have summoned executives from major firms that could be affected by such a measure for meetings to discuss the matter, London’s The Sunday Times reported.
The Times reported that what is being called an “excessive profits tax” could hit companies including Amazon.
The windfall from a new tax would be used to address budget pressures caused by government spending to fight the pandemic and tax receipts lost due to COVID-necessitated shutdowns, the Sunday Times reported.
The paper based its article on emails it said were leaked to it.
According to the paper, a spokesman from Britain’s Treasury emailed a statement that reads: “We want to see thriving high streets, which is why we’ve spent tens of billions of pounds supporting shops throughout the pandemic and are supporting town centres through the changes online shopping brings.
“Our business rates review call for evidence included questions on whether we should shift the balance between online and physical shops by introducing an online sales tax. We’re considering responses now.”
The paper also reported that an excessive profits tax would probably be announced during the second half of the calendar year.
Reuters reported that talk of the new tax comes as Britain Chancellor of the Exchequer Rishi Sunak faces pressure from members of his Conservative party to staunch what the wire service called the heaviest government borrowing since World War II.
Last month, the U.K. government required that larger companies pay small businesses among their suppliers within 30 days of receiving invoices. The Financial Times reported that the rule applies to suppliers with 50 or fewer employees. When paying larger suppliers, the paper reported, companies can still take the previously allowed 60 days.
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