Chancellor Rishi Sunak urged to ensure any ‘Amazon tax’ is not passed on to smaller firms

The report said neither rise is expected in next month’s budget, but it is understood increases could be part of efforts to cut Britain’s debts this autumn.

At the March budget high street firms are hoping to see a business rates holiday extended, and reforms to the tax system which is linked to property values.

Shares in Asos and Boohoo were off 4% this morning, while Ocado lost 37p, or 1.3%, to 2771p.

Kelly at Tech Nation, a network for tech entrepreneurs, said: “The new system must evolve but continue to support the growth of UK tech, which is now fundamental to our economy.”

He added: “There needs to be a way of ensuring big tech corporates pay fair taxes rather than pass them on. As with all policy changes, both the digital services tax and a tax that targets excessive profits must be considered holistically to mitigate adverse impacts on scaling businesses.”

The British Retail Consortium’s Helen Dickinson said economic recovery after Covid will be powered by consumer demand, and “the chancellor should ensure he doesn’t introduce any new taxes that stifle this”.

Lisa Hooker, consumer markets leader at accountancy giant PwC, said: "The business rates holiday was much needed for the embattled high street and, for some, it has been the difference between surviving the pandemic or not. But a review of business rates was needed before the pandemic, as bricks and mortar shoulder a disproportionate amount of tax.”

She added: "The form of the replacement tax needs careful consideration so that it doesn't just result in retailers paying more tax but in a different way. Consumers now shop seamlessly across stores and online so it may be difficult to measure and collect an online only tax.”

Walpole’s Helen Brocklebank said: “An innovative overhaul of business rates and a properly thought-through approach to how online-only giants contribute is long overdue. I’m cautious, though, about connecting a digital sales tax with rates reform: the potential for unintended consequences could do more harm than good.”

Amazon said it has invested more than £23 billion in jobs and infrastructure in the UK since 2010. Last year it created 10,000 new jobs and last week announced 1,000 new apprenticeships.

The company said this “continued investment helped contribute to a total tax contribution of £1.1 billion during 2019 – £293 million in direct taxes and £854 million in indirect taxes.”

A Treasury spokesman said: “We want to see thriving high streets, which is why we’ve spent tens of billions of pounds supporting shops throughout the pandemic and are supporting town centres through the changes online shopping brings. "

The spokesman added: "Our business rates review call for evidence included questions on whether we should shift the balance between online and physical shops by introducing an online sales tax. We’re considering responses now.”