This consultation, on the potential introduction of an Online Sales Tax, has been linked by the Government to last year’s review of the business rates system. FSB did welcome some of the changes which were announced in last year’s review of Business Rates, but our view remains that the review did not go far enough. Business rates continue to represent a disproportionate tax burden on many small businesses, continuing to hold back the recovery of high streets. Therefore, we believe that Business Rates should continue to be reformed, in particular by expanding the Small Business Rates Relief threshold to £25k. Those further reforms to the business rates system should not be conditional on the decisions taken as a result of this consultation on an Online Sales Tax (OST).
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