Ministers consult on plans for digital tax to cut business rates Ministers are seeking retail industry insight on a possible online sales tax that could deliver a reduction in business rates, Lucy Frazer, financial secretary to the Treasury, has revealed. She said that as officials want to see “thriving high streets and a fair economy”, ministers are “committed to look at an Online Sales Tax – given the imbalance identified by some between online and in-store retailers.” She added: “Whilst we've made no decision on whether to introduce such a tax, it's right that, given the growing consumer trend to shop online, we work with stakeholders to assess the appropriate taxation of the retail sector.” The consultation will last for three months and ask businesses to identify the products and services that would be involved. They will also be asked to comment on whether it would be a flat-fee tax, based on the number of transactions or deliveries, or a revenue-based tax.