French government plans to introduce a tax on e-commerce

The French government is planning to introduce a tax on e-commerce with the goal to revitalise trade in city centres and to protect smaller businesses. At first, the tax was suggested to be 50 cents per each km the package travelled, but instead a proportional tax was proposed – ranging from 1 % of the purchase price (in case the distance between the last storage warehouse and the delivery address is shorter than 50 km) to 2% (if the distance is larger than 80 km). The French retail sector fears that consumers will be affected and that free deliveries will become impossible. They also believe that the new tax would hit French companies as well, and not only the large foreign retailers. The Assemblée Nationale is expected to examine the bill and decide whether it will be approved.