The British Beer & Pub Association (BBPA) has responded to the Government’s consultation on corporate tax and the digital economy, urging the Treasury to deliver more far-reaching reform, to ensure fairness across business and address the rapidly evolving nature of business.
The BBPA says, wide-ranging reform of business rates could boost Treasury revenues and avoid the need for temporary policies, such as business rates reliefs.
The current taxation system is not fit for purpose, roughly £1 of every £3 (34%) made in the pub goes to the taxman, while well-known digital companies continue to pay only a fraction of this on their UK earnings.
Last year, for example, internet giant eBay paid £1.6m on its declared UK turnover of £200m whilst a medium sized brewer paid £7m on its turnover of £18m in beer duty, a difference of nearly four and half times as much.
Brigid Simmonds, Chief Executive of the British Beer & Pub Association, commented, “The pub is unfairly burdened by the current business rates regime. We will continue to campaign for a tax system that allows the beer and pub sector to thrive, boosting the already large contribution the sector makes to the UK economy.”