The HMRC has levied DST (2% of the turnover) on digital services like google advertisments, that's understandable, however, google has decided to add this 2% to the advertiser's bill. Now this gives rise to a few burning questions:
a) This tax is not chargeable for the first £25 Million of the annual turnover, so if they charge it from all customers, they're making a windfall income of £500K every year. So is it fair to charge it to their customers directly?
b) This is a tax of unique nature with both the direct and indirect attributes. Direct because this is not technically recoverable from the end-user and indirect because it's computed based on your turnover and not profits. Another reason to question the direct mode of recovery from their clients.
c) Would it be ethically fair on google's part to mention this tax like an additional cess to the advertisers, rather than increasing their prices overall to cover these additional expenses? That too without factoring in the £25 Million annual DST free turnover allowance they will be enjoying.
Looking forward to some opinion, thanks in advance.