Web tax fails to dent Wal-Mart sales

Web tax fails to dent Wal-Mart sales

All Wal-Mart customers will now pay sales tax

A sales tax on goods sold through the internet has failed to cause a drop-off in online sales at Wal-Mart, the firm's web chief has said.

The tax had "not really" impacted sales and customers had not complained, Walmart.com president and chief executive John Fleming told Reuters

US High Street retailers have complained about unfair competition from tax-free online stores.

Under current laws, mail-order and pure online retailers have to charge sales taxes in states where they have operations, such as a warehouse or distribution facility.

Lawmakers have failed to enact proposals that would allow states to collect sales tax from the big retailers based in other areas.

Buy online, pick-up downtown

The big retailers which have opted to collect the charge rather than face lawsuits by states, which are eager to boost tax revenues from online transactions.

Wal-Mart had combined its store and online operations so customers could buy online, and sales tax free, and then collect the items at a store.

Earlier in February, eight leading retailers including Wal-Mart, Target and Toys'R'Us agreed to charge online sales tax in 37 states and the District of Columbia.

Wal-Mart began collecting sales tax from online customers in all 50 US states on 1 February.

It had previously charged tax in nine states.