Asda speaks out against Online Sales Tax

Asda is understood to have spoken out against the proposed Online Sales Tax (OST) to the government.

The Daily Express reported that the supermarket was one of several retailers to meet with Lucy Frazer, financial secretary to the Treasury, to discuss the potential tax.

The retail industry’s views on the tax are split between both opposing viewpoints.

In May, the chief executive of Marks & Spencer (M&S), Mark Rowe, criticised the government’s planned Online Sales Tax, suggesting it would “stifle” innovation in the physical retail space.


M&S is joined by the John Lewis Partnership, Currys, Gymshark, Amazon, Asos, and eBay in opposing the tax.

Meanwhile, Tesco, Sainsbury’s, The Co-op, Morrisons, and Kingfisher have come out in support of the tax.

In February, Tesco suggested the government could use the revenue from the OST to fund a 20 per cent cut in business rates for all brick-and-mortar retailers, and that small businesses could be exempted from the online sales levy.

The statements come as the government is currently evaluating responses to its consultation on the introduction of the tax, which it closed in May.

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