The inquiry, led by Labour MP Clive Betts, into high streets and town centres in 2030 found “dated policies and an unfair tax regime” that must be changed to allow high streets to survive. 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 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 .