Online retailers including Ocado, Boden and Shop Direct plan to write to the Chancellor over online tax branding the idea as 'nonsense'.
News of the letter, which broke over the weekend, comes after Next chief executive Simon Wolfson branded the tax 'anti-competitive.'
The letter says the tax would 'kill entrepreneurial spirit' in the fast growing online sector. The letter claims such a tax would have a knock-on effect on supporting industries in the technology, manufacturing, logistics and marketing sectors.
'Online is a rare an precious success story for the UK and one that we should take pride in. At a time when SMEs in these sectors are attempting to deliver innovation, growth and jobs they should not be choked off by the unintended consequences of an unfair tax,' says the letter which is printed in full on The Times web site today.
The letter has also been signed by catalogue and online giant N Brown and Appliances Online.
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