According to a recent study, UK businesses paid £196 billion in tax during 2018/19, which is a considerable increase on £188 billion in the previous year. In total, during the year, business tax contributions amounted to 27 per cent of all tax revenue collected by the Treasury.
Moreover, CBI analysis of data published by the Office for National Statistics (ONS) found that of the total, 31 per cent, totalling £60 billion, was paid in corporation tax, while employer’s national insurance contributions came to 32 per cent, which is equivalent to £63 billion.
In total, business rates accounted for 14 per cent (£28 billion), fuel duties for six per cent (£12 billion), while 17 per cent (£33 billion) came from other business taxes. Commenting on the findings, a spokeswoman for the CBI said that the figures highlight the vital role businesses play in the UK.
Meanwhile, supermarket giant Tesco has urged the Government to impose a two per cent online sales tax to help pay for cuts in business rates for shops, saying the current system is unfair and is damaging communities across the UK.
In written evidence to a Treasury select committee investigation, Tesco, which pays approximately £700 million a year in business rates and is one of the biggest payers of the property-based tax, has made detailed proposals for a shake-up of the system.
According to Tesco, the Government should use the revenue collected to fund a 20 per cent cut in business rates for all bricks and mortar retailers. It also says that small businesses should be exempt from the online sales levy.