UK to discuss tax increases with big tech firms that prospered during pandemic

The U.K. government is weighing tax increases for tech firms and online retailers such as Amazon.com Inc. that prospered during the pandemic, the Sunday Times reported.

Treasury officials summoned tech firms and retailers to discuss this month how an “online sales tax” would work, according to leaked emails seen by the newspaper. Meanwhile, the Downing Street policy unit is also planning an “excessive profits tax” on companies whose profits surged because of the Covid-19 crisis, the newspaper said.

Neither tax rise is expected in the March 3 budget, but they could arrive later this year as part of the U.K.’s efforts to cut debts, senior government sources told the Sunday Times.