In its consultation document, the UK Treasury said the tax was being considered as a way of raising “revenue from the increasing volume of online retail in the UK, with that revenue used to fund a reduction in business rates for retail properties.” It added: “It is worth noting that an OST levied at 1% or 2% would not raise sufficient revenue to replace in full the business rates lived on retailers”. A tax of 1% would rase about £1bn, the document says, while business rates are reported to raise about £25bn a year.
Source: internetretailing.net
