Postcomm, the postal regulator, is hearing views from the Royal Mail and private companies entering the market, but is understood to considers a 5% tax as one of the best options.
It is concerned the Royal Mail’s VAT exempt status gives it an unfair advantage because competitors must levy the full 17.5%, The Independent reported.
The Treasury said it was opposed to the creation of a literal ‘stamp duty’. But it said it would continue to monitor the VAT position as it supported the creation of a ‘level playing field’ in the sector.
Report argues that the government must change the way it makes tax and budget decisions
Drastically fewer offices for HMRC in the hope to reduce their running costs
Tayabali Tomlin and d&t directors launch £20 a month TaxGo service, aiming to be the 'biggest UK firm' by client numbers
Companies must report on their complex financial structures including offshore accounts and notify HMRC