Neil O’Brien, a rising star of the Tories, says that an additional three percent tax should be paid by online retailers such as eBay and Amazon to help the ailing high street of the United Kingdom.
The Tory MP for Harborough, Oadby and Wigston said that as much as £500m per year could be raised by the additional tax once imposed.
O’Brien said that the additional income from the digital tax could help in compensating for the declining sales in the bricks and mortar retailers of the United Kingdom.
The suggested tax would also be imposed on search engines such as Google, with the online retailers that have global revenues in excess of £650m anticipated to pay up.
“You could raise hundreds of millions through a turnover tax. This could allow us to do something useful for the high street,” said O’Brien during an interview with the Sun.
He added: “The Treasury wants to do the right thing.”
The Sun reported that the backbencher is being supported by Tories such as Nick Boles, a former minister.
The proposal of O’Brien comes amid a series of poor results for the retail sector of the United Kingdom.
According to a research that was conducted by Lendy, a peer-to-peer property lending platform, that was published yesterday, the number of huge UK department stores in England has dropped by approximately 25 percent in less than a decade.
Meanwhile, the poor weather that was experienced in March and April sent the retail footfall into a quicker decline as compared to the recession that was experienced in 2009.
Earlier in May, the British Retail Consortium (BRC) disclosed that the sharpest sales drop on record in April was experienced by retailers in the United Kingdom.