Radical taxation overhaul needed to bring business tax into 21st Century
The ALMR has warned that without Government action to overhaul business taxation, the hospitality sector will overpay business rates by £10billion by 2025.
In its submission to the Government’s consultation on corporate tax and the digital economy the ALMR has called for a radical rethink of business taxation and the establishment of a system that is more equitable and does not unreasonably favour digital businesses.
ALMR Chief Executive Kate Nicholls said: “The influential Treasury Select Committee rightly pointed out that business rates damage the competitiveness of shops on the high street relative to large out-of-town distributors and online retailers.
“This is an issue we raised with the Committee and senior MPs back our stance on this issue and understand that this taxation imbalance between high street businesses compared to those based online or in retail parks needs to be addressed otherwise high streets will be forced to fight an uphill battle against a system that is rigged against them.”
“The Government’s openness to suggestions on the system is welcome, but unless it pushes ahead with fundamental change across the entire system high street businesses, particularly hospitality businesses, will continue to face crippling and unreasonable rates bills.
“The current system is archaic, completely unfit for purpose and sees hospitality businesses shouldering the burden as high streets are slowly strangled. The Government needs to act on its manifesto promise of root and branch reform otherwise businesses will be waiting until 2025 before they see any change, by which time it will be too late for many.”