Amazon

Lord Leigh of Hurley Excerpts

Monday 12th October 2020 Lords Chamber

Asked by

[Lord Leigh of Hurley]

To ask Her Majesty’s Government what steps they are planning to take (1) to protect third party sellers from the dominance of Amazon, and (2) to ensure that Amazon does not benefit from passing on the costs of the Digital Services Tax to sellers.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Baroness Barran) (Con)]

My Lords, the Government are committed to ensuring that digital markets work for all—businesses, consumers and society as a whole. Promoting dynamic and competitive digital markets will be key to maintaining a world-leading digital economy in the UK. That is why we accepted the six strategic recommendations of the Furman review and established the digital markets task force to advise on the potential design and implementation of pro-competitive measures in digital platform markets.

[Lord Leigh of Hurley (Con) [V]]

My Lords, I appreciate that the DST was always intended as a stopgap while the OECD comes up with a more global solution, possibly imminently. But it was brought in with the background of Amazon paying just £4.6 million in corporation tax in 2017. The DST does not achieve its objective of yielding more revenue from the likes of Amazon, as it is simply passed on to its suppliers in the marketplace, which have to absorb this tax in their margin. Would the Minister be prepared to set up a meeting with me, some interested parties and HM Treasury to consider this much more carefully?

[Baroness Barran (Con)]

The Government expect the digital services tax to raise about £2 billion over the next five years, which will go some way to addressing the issues that my noble friend raises, but I am delighted to commit to meeting him and other interested parties.