Market Round Up: E-Commerce Taxation 😰 Plastic fantastic ✌
1. E-commerce Taxation
British finance minister, Philip Hammond, has put a substantial taxation target on the backs of online consumer and retail platforms, such as Google, Amazon and Facebook – but will consumers bear the brunt?
For years, online retailers have been allowed to go under the tax radar and pass on the benefits of lower prices to you, the consumer, but maybe no more. Hammond’s latest budget statement proposed a ‘digital services tax’ of 2% for firms making over £500 million yearly by 2020 that would make “these global giants pay their fair share towards supporting British public services”.
Hammond said that this tax would not affect consumers or cripple fintech startups, but can we rely on these tech giants to take the hit and not pass the cost onto us? Only time will tell, but analysts are criticising the movement to tax international business at a time when international investment in the UK is of such importance prior to Brexit.
Better get your online shopping fix now before its too late!
2. Plastic Fantastic
Three big names have joined the global fight to end plastic pollution and grow the global initiative to switch to alternatives. Coca-Cola, Nestle and Kellogg’s have come together in a concerted effort to save our oceans and beaches from the waves of trash that end up there every day.
Analysts report that if left unchecked, plastic waste will outnumber the amount of fish in the sea by 2050 – a terrifying thought to say the least.
After being named the three worst polluters in the US & Canada, the three production giants have agreed to “improve the sustainability of all of our packaging, regardless of the type, and increase the amount of recycled and renewable materials”.
Though these changes may change their performance in the short-run, the medium to long-term effects of sustainable production may offset the increased cost with a growth in popularity to support their environmentally conscious approach.