An additional sales tax in Scotland could push up costs and further decimate the country’s high streets and businesses.

Plans for local taxation unveiled by the Scottish Government could be used by local authorities to raise extra funds as a replacement for lost council tax.

“This would close a lot of businesses” – Mo Razzaq

But retailers fear it could see further businesses close down as shoppers migrate online or to England to
save money.

“I’d be surprised and disappointed if the Scottish government do this,” said Mo Razzaq of Premier Mo’s, Glasgow. “This would close a lot of businesses.”

Scottish Retail Consortium director David Lonsdale said: “Introducing a sales tax over and above existing VAT would push up the cost of shopping.”