The former chief executive of Sainsbury’s has urged government authorities to “make Amazon pay fair share of tax”.
Justin King, who was at the helm of the Big 4 retailer for a decade before stepping down in 2014, told Sky News that the British tax system needed to be overhauled to prevent online companies like Amazon from having “an unfair advantage”.
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His remarks follow revelations that despite doubling its profits, Amazon paid £2.8 million less in UK corporation tax in 2017.
According to accounts filed at Companies House, Amazon UK Services Limited incurred £4.6 million in UK corporation tax in 2017, compared to the 2016 figure of £7.4 million.
However, after deferring £2.9 million, the online retail giant only paid £1.7 million in tax.
King said businesses rates needed to be halved with the lost revenue to be replaced by a two per cent increase in VAT.
He said this would not increase shop prices, but would mean online businesses such as Amazon paying a fairer share of tax.
He also suggested that the government look at the possibility of imposing a “delivery tax” on online retailers that “bypass retail space”.
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