Considered ‘Amazon Tax’ Could Cause Significant Impact on Warehousing and Logistics Sector

The UK government’s suggested ‘Amazon tax’ is likely to have implications that go beyond big online retailers, says Midland Pallet Trucks. While such a move could be positive for the traditional retailers, any proposed changes would need to consider the broader digital commerce supply chain, the leading pallet truck specialist has said.

In an interview with Sky News, Finance Minister Phillip Hammond revealed that the UK government has been considering introducing a so-called ‘Amazon tax’ that would aim to ensure industry taxation was fairer. The comments were made amid pressure faced by high street stores from outgoings, such as business rates. He noted that such a move would require the renegotiation of international tax treaties, due to many of the largest online businesses being international companies, making it a highly complex topic.

Phil Chesworth, Managing Director of Midland Pallet Trucks, said, “There defiantly needs to be more of a balance when it comes to costs for bricks and mortar stores and online sellers. However, an ‘Amazon tax’ could lead to cost skyrocketing for consumers and businesses operating within the digital commerce supply chain being affected too. Any proposed changes need to look at the bigger picture before any steps forward are taken. E-commerce has become such a large part of our economy and lifestyle, that many people depend on it for jobs, convenience, and competitive pricing.”

The calls for changes come amid another wave of household names entering administration. So far this year, Poundworld, Maplin, and Toys R Us have gone bust, with House of Fraser being bought out of administration by Mike Ashley, the owner of Sports Direct. Other retailers, including Mothercare and New Look, have announced store closure programmes. It’s business rates that have most commonly been blamed as a reason retailers are struggling, with high street brands paying significantly more than online counterparts.

Streamlining processes in warehouses with carefully chosen equipment, such as hand pallet trucks or lift tables, can help businesses operating within e-retail supply chains reduce costs as competition could rise while margins are reduced.

Chesworth added, “It’s likely that at some point the government is going to take action to address the financial difficulty so many high street retailers are finding themselves in. The e-commerce supply chain needs to anticipate this and how it’ll affect their business before it happens, allowing firms to put the necessary steps in place to minimise risks.”

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