Morrisons boss urges government to act on online tax

15th Jul 2013 06:43

Morrison Supermarkets Chief Executive Dalton Philips has urged Britain's government to address the tax imbalance between internet and high street retailers.Philips said Morrisons is willing to pay an online tax on its new internet delivery business if the government deals with the "massive disadvantage" that the high street suffers compared to web-based retailers. "We're moving into the online space, so we'll have to pay our contribution," Philips told The Daily Telegraph. "As a country, we need to look at how we're going to tax retailers in general wherever they operate, because we've all got to contribute to society, but one can't be disadvantaged over the other." He argued the tax system was illogical and that there needed to be a "level playing field".The rates "just go up and up... and what's that going to do to our town centres?" he said. "It's a massive disadvantage to the bricks and mortar retailer." Philips is among a string of executives of top UK retailers to complain including Sainsbury's boss Justin King and Top Shop tycoon Sir Philip Green. They have complained that business rates - based on property rents - have rose 13% in three years while internet firms are exempt. Morrison paid £240m in business rates last year. The Parliamentary Business Select Committee is looking into the way retailers are taxed. Last week the British Retail Consortium (BRC) had a meeting about rates with retail finance directors and tax experts. Helen Dickinson, head of the BRC, said: "We need to decouple the international tax element from business rates as, while interconnected, they require separate solutions. The strategy of the Government to focus on a very competitive tax regime while at the same time maintaining Treasury revenues has delivered an increasing burden in immoveable taxes on people and property." Morrison is launching its new internet delivery service next year under a deal with Ocado Group. RD