Delivery firm ParcelHero has said that the upcoming Online Sales Tax (OST) will mean that ‘consumers will end up paying more’.

ParcelHero’s head of consumer research David Jinks highlighted that “the pandemic is not over, inflation is rising, and we are all facing increasing heating and energy bills.”

Jinks said that “most stores will lose more on sales tax than they gain from any business rate rebate.”

The exec called on government to “scrap plans” for the new tax and to introduce a Commercial Land Levy instead.

The consultation on the new tax is set to end on May 20.

“The report implies there is a difference between online sellers and high street sellers that needs rebalancing, but that is a ridiculously outmoded idea,” said Jinks. “Today every retailer, from a small craft store to a huge fashion chain, should sell online as well as in-store.”

He added: “In our view, there is no need for an online sales tax of any kind to plug the hole in the government’s coffers.”

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