MPS urge shoppers to boycott Amazon

A group of Labour MPs, including Public Accounts Committee chairman Margaret Hodge [pictured], is calling on shoppers to boycott Amazon this Christmas following the company’s poor record on UK corporation tax.

MPs Austin Mitchell,  Natascha Engel, Meg Hillier, Margaret Hodge, John McDonnell, Michael Meacher, Graham Morris and Dennis Skinner all are involved, joining the Ethical Consumer magazine's Boycott Amazon campaign.

Hodge said she has not used Amazon since the company appeared in front of the Public Accounts Committee last year. She said: “It's hugely important that we all take a stand and damage the reputation and business of companies such as Amazon that deliberately avoid paying their fare share of tax to the common purse for the common good. If enough people boycott Amazon then we will damage their business. Amazon's market share and reputation matters.”

Hodge argued that it was not only “morally wrong” to aggressively avoid paying tax on profit that Amazon earns from the business it does in the UK, but this “disadvantages every business from the local community-based bookshop to bigger, British-based companies like John Lewis and therefore endangers British businesses and British jobs.”

She added: “Paying tax is part of the social compact. What makes us a society is that you agree to give according to your means or your profit.When times are hard and people are struggling, for big corporations to feel that they can choose whether or not to pay their fair share of tax is just wrong. Companies should act more responsibly. "

Last year, Amazon representative Andrew Cecil appeared in front of the Public Account Committee to defend the company’s low corporation tax payments in the UK, which according to company filings showed that Amazon.co.uk paid tax of £3.2 million on sales of £320 million in 2012. However, the Seattle-based group has told investors its 2012 UK sales were £4.2 billion.

Ethical Consumer's Tim Hunt said: “Amazon is having a devastating impact on high streets across the UK as tax-paying businesses are unable to compete with Amazon.

This Christmas shoppers may benefit from Amazon's cheap shopping but these bargains come at the cost of reduced public services. Amazon's tax revenues could help fund the vital public services that are now being slashed.”