Chancellor Rishi Sunak is set to consider introducing an online sales tax, in an attempt to save the high street.

It is believed that a 2% tax charge could raise up to £2 billion a year and could see more people visiting their local high street rather than purchasing goods online.

Rishi Sunak has already shared his concern that business rates are leaving high street retailers at a major disadvantage in comparison to their online rivals and this is seen as an opportunity to start to level the playing field.

A government spokesperson told Sky News:

“Last week, as we set out in the budget and manifesto, we published a call for evidence to look into all aspects of the business rates system,”

“And as part of this we will consider the case for introducing alternative taxes as part of the review, including an online sales tax.

“The pandemic has had a significant impact on how business is done and the effect of this will become clearer over time.

“We’ll continue to support businesses as far as possible, but we must also ensure that the tax system raises sufficient revenue to fund our vital public services.”