Let’s get a sales tax to boost Castle Point businesses

Let’s get a sales tax to boost Castle Point businesses

Let’s get a sales tax to boost Castle Point businesses

First published in News by

A SALES tax is being mooted as the answer to struggling businesses in Castle Point.

Businesses across the borough have been hit hard by rising business rates, which are currently set based on the commercial value of the property.

Now, a committee wants that scheme scrapped and businesses to be charged rates based on the amount of goods they sell.

Castle Point MP Rebecca Harris, who is part of the Business Innovation and Skills Parliamentary Select Committee, says the plans will give independent shops a chance against retail giants.

The select committee has written to the Government asking it to consider the reforms.

Grouts the Bakers, which has branches across south Essex including Canvey and Benfleet, supports the plans and says it will inject life back into the high street.

Owner Giles Grout said: “I think the plans make a lot of sense as it is inconceivable that smaller businesses pay the same rates as a big warehouse.

“It is a very interesting report.

I hope the Government go on to implement these findings and revamp the rates system to help our high streets. Any help to help revitalise our town centres will always be welcome.”

The Echo reported yesterday businesses in Castle Point were suffering due to a combination of parking charges and business rates.

Mrs Harris said a sales tax would be the best way to level the playing field between high street and online retailers.

She said: “With more and more retail business happening online, the current system seriously penalises high street traders. A massive online retailer with sales in the billions and a national delivery network for example only pays business rates based on the property value of a few warehouses and offices around the country, but the local baker, dry cleaner, jeweller or pet shop owner who turns over tens of thousands a year and only serves their local community, has to pay a massive proportion of their income on the property value of their only shop.”

! A tax paid to the Government for the sales of certain goods and services, not the rateable value of a property.

A sales tax would see different items taxed a certain amount, dependent on how much they cost.

Comments (6)

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10:29am Mon 10 Mar 14

andyh says...

Many years ago we replaced one "sales tax" (called purchase tax) with another (called VAT). A local sales tax might well have me buying from Sainsbury's in Basildon rather than at Rayleigh Weir (probably not because Basildon would probably have a hight LST) or from Tesco's in Southend rather than Pitsea. Also I seem to remember that EC rules prohibit any sales tax other than VAT and constrain the level of that.
Many years ago we replaced one "sales tax" (called purchase tax) with another (called VAT). A local sales tax might well have me buying from Sainsbury's in Basildon rather than at Rayleigh Weir (probably not because Basildon would probably have a hight LST) or from Tesco's in Southend rather than Pitsea. Also I seem to remember that EC rules prohibit any sales tax other than VAT and constrain the level of that. andyh
  • Score: 0

10:59am Mon 10 Mar 14

Howard Cháse says...

How about lowering the business rates and/or rents/leases on retail premises.


Quality bakers Grouts by the way.
How about lowering the business rates and/or rents/leases on retail premises. Quality bakers Grouts by the way. Howard Cháse
  • Score: 0

11:21am Mon 10 Mar 14

MilesBond says...

If it is their only shop they will be getting small business rate relief; which is currently 100%
If it is their only shop they will be getting small business rate relief; which is currently 100% MilesBond
  • Score: -1

2:46pm Mon 10 Mar 14

emcee says...

andyh wrote:
Many years ago we replaced one "sales tax" (called purchase tax) with another (called VAT). A local sales tax might well have me buying from Sainsbury's in Basildon rather than at Rayleigh Weir (probably not because Basildon would probably have a hight LST) or from Tesco's in Southend rather than Pitsea. Also I seem to remember that EC rules prohibit any sales tax other than VAT and constrain the level of that.
I think you have got the wrong end of the stick. VAT will stay. It is the tax (business rates) that the business pays that would change. Instead of this tax being based on the value of the business property it would be based purely on sales, making smaller businesses more competative.
For example, if a town centre bakery ran their business from property that was the same value as the one a small Tesco Metro uses down the road, they would, as things stand at the moment, pay the same business rates. However, if the bakery only had a turnover one tenth of that of this Tesco Metro then the bakery's taxes would be far lower than those of Tesco, should the new "sales" taxation be implemented.
[quote][p][bold]andyh[/bold] wrote: Many years ago we replaced one "sales tax" (called purchase tax) with another (called VAT). A local sales tax might well have me buying from Sainsbury's in Basildon rather than at Rayleigh Weir (probably not because Basildon would probably have a hight LST) or from Tesco's in Southend rather than Pitsea. Also I seem to remember that EC rules prohibit any sales tax other than VAT and constrain the level of that.[/p][/quote]I think you have got the wrong end of the stick. VAT will stay. It is the tax (business rates) that the business pays that would change. Instead of this tax being based on the value of the business property it would be based purely on sales, making smaller businesses more competative. For example, if a town centre bakery ran their business from property that was the same value as the one a small Tesco Metro uses down the road, they would, as things stand at the moment, pay the same business rates. However, if the bakery only had a turnover one tenth of that of this Tesco Metro then the bakery's taxes would be far lower than those of Tesco, should the new "sales" taxation be implemented. emcee
  • Score: 4

2:53pm Mon 10 Mar 14

emcee says...

MilesBond wrote:
If it is their only shop they will be getting small business rate relief; which is currently 100%
But is this only for a limited period? I believe it was supposed to end in March this year but has been extended for one year.
Besides, the 100% only qualifies if the business occupies the cheapest of premises and there is a sliding scale up to 0%.
[quote][p][bold]MilesBond[/bold] wrote: If it is their only shop they will be getting small business rate relief; which is currently 100%[/p][/quote]But is this only for a limited period? I believe it was supposed to end in March this year but has been extended for one year. Besides, the 100% only qualifies if the business occupies the cheapest of premises and there is a sliding scale up to 0%. emcee
  • Score: 4

8:52pm Tue 11 Mar 14

Nebs says...

An internet sales tax might help high street shops. Or at least a purge on all those running a business on ebay and claiming to be private sellers.
An internet sales tax might help high street shops. Or at least a purge on all those running a business on ebay and claiming to be private sellers. Nebs
  • Score: -1

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