Northern Ireland is hoping to impose a tax on large retailers by April despite outcry that it is the “wrong levy at the wrong time”.
Finance minister Sammy Wilson has told the Financial Times (FT) that Northern Ireland is going to use the levy to fund a rates relief scheme for smaller shopkeepers.
This is despite what he has described as “bully boy” tactics from Tesco to try and quash the idea as he believes the tax would cost the supermarket a minimal amount of money.
“I worked it out when they were sitting talking to me about it. It is a 0.004 per cent reduction on their return on capital over a 25-year period,” Wilson told the FT.
“I think I described it as typical Tesco bully-boy tactics. You know we want our way, we’ll stamp our feet, and because we are such a big company, people will do what we say."
But Tesco has said the levy could cost the supermarket £1.5 million to £2m and said the tax would mean less investment in Northern Ireland by businesses.
This sparked fears the supermarket would scrap its £100m investment programme in the country.
“It is the wrong tax at the wrong time for Northern Ireland and its communities.” Tesco said.
B&Q and Sainsbury’s have also lobbied against the proposed levy. However, Mr Wilson has told the FT he is presenting a legislative proposal to the Northern Ireland executive this week and expects it to be approved. He has said it could be passed via an accelerated legislative procedure and come into force by April.
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