Online furniture brand Made.com has joined a group of 11 retailers and industry groups urging Chancellor Rishi Sunak to reject proposals to bring in an online sales tax.

In a joint letter to the Chancellor, the retailers, including The Very Group, eBay and Ocado, said that if proposals go ahead, it could see cost increases passed onto the consumer, further exacerbating the cost-of-living crisis.

According to a report in The Telegraph, the letter said the levy would “hurt – not help – the high street, and stifle retail innovation and investment. The burden of business rates on retail is too high and needs reforming, but an additional tax on a sector that is already overtaxed is not the answer.”

The government previously said that the online sales tax could help bridge the imbalance between online and bricks and mortar retailers, while also potentially seeing a cut to business rates.