Supplementary tax 'could cost firms £1.5 billion annually'

News Article - 09 August 2007
Category: Business

Firms in the UK could soon have to pay additional tax if proposals by the communities and local government committee are approved.

The committee would like to see the implementation of supplementary business rates levied by councils in the form of a local business tax.

It suggests that local authorities should be able to charge businesses in their areas a supplementary rate of up to ten per cent.

Should the move be approved, companies may face a combined additional tax bill of £1.5 billion, Accountancy Age reports.

"Supplementary business rates will be a significant step forward in terms of liberation and local empowerment," said Dr Phyliss Starkey MP, the committee's chairman, according to the Independent.

Meanwhile, Sir Jeremy Beecham, vice-chairman of the Local Government Association, stated that the move would help promote economic development on a local level.

However, Kevin Hawkins, British Retail Consortium director-general, warned that the proposal could end up costing stores on the high street up to £500 million a year.

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