Tesco has reportedly been raising funds among UK retailers for an online sales tax in a bid to overhaul the business rates system . CEO Dave Jones wants rates to be cut by 20 % , with losses offset by a 2 % tax on online sales . The reform is aimed at helping high street brands survive under what a parliamentary inquiry found to be an unfair tax system that allows online retailers to undercut bricks - and - mortar retailers . MPs have considered reforming business rates but have refused because it is an easily collectable tax . Under EU rules , an online sales tax would be illegal .
Tesco has reportedly been raising support among UK retailers for an online sales tax in a bid to overhaul the business rates system. CEO Dave Lewis wants rates to be cut by 20%, with losses offset by a 2% tax on online sales. The reform is aimed at helping high street brands suffering under what a parliamentary inquiry found to be an unfair tax system that allows online retailers to undercut bricks-and-mortar retailers. MPs have considered reforming business rates but have resisted because it is an easily collectable tax. Under EU rules, an online sales tax would be illegal.