ONLINE retail giants could soon pay an online sales tax to protect high street shops - weeks after Southend’s deptuy urged the Government to take action.

Chancellor Rishi Sunak is considering the introduction of a digital retail tax which would be introduced as an online equivalent to business rates.

The Government is collecting evidence on how beneficial the tax could be but the idea is similar to one suggested by Southend’s deputy leader Ron Woodley.

Mr Woodley said it was “positive” the Government is considering the measure and denied that the added cost will be put on consumers.

He said: “Unless these online retailers have shops where people can collect goods, they should be subject to this levy. The more the Government can do to help our high streets and shopping areas the better.

“It is an unfair scenario where retailers are paying out high business rates so the Government has two options, it can either lower business rates or offset the business rates by introducing a levy on the online retailers.

“I don’t think this will affect the cost of the products for shoppers because they are making millions of pounds so it should come out of their excess profits rather than lead to an increase in prices.

“At the end of the day, this has to be addressed. We cannot have one business with an unfair advantage against another.”

The chancellor is understood to be considering two options.

The first would be a levy of 2 per cent on all goods bought online, the second is a tax on deliveries.

An online sales tax has also been welcomed by Southend BID manager Suzanne Gloyne who said she would “welcome any measures that would support our businesses”.

She added: “High Streets have been, and will remain, a hub for the community so any activity that will boost businesses for the long term would be welcomed.”

However, an analysis by the Taxpayers’ Alliance has warned the tax is likely to cost the average household at least £56 per year in “unnecessary charges”.

The group said the proposals would raise costs for consumers and ignore changes in consumer behaviour, with “the poorest and most vulnerable” being most affected.