Marks & Spencer has written to the chancellor warning that an online sales tax would damage the High Street.
Players SLOT will be able to deposit an unlimited number of withdrawals per day. Unlimited withdrawal amount
A three-month government consultation on whether to introduce an online sales tax closes on Friday.
The Treasury said the proceeds would go towards funding a reduction in business rates for shops.
But M&S believes a new online tax would "punish" the very retailers it plans to support and leave them less money to invest in High Street stores.
The chain's chief financial officer, Eoin Tonge, argued in excerpts seen by the BBC that traditional retailers have worked hard to diversify and grow their online sales.
He said an additional tax burden would make it harder for them to invest in what is needed to survive and grow in the modern, digital era.
"Introducing an additional tax on retail - already overburdened - will simply mean retailers cut their cloth accordingly," he said.
"This rationalisation will always start with the least profitable parts of a business - which, in the case of multi-channel retailers, will more often than not be High Street stores," said Mr Tonge.
"Therefore it is likely that, far from helping the High Street an online sales tax will damage shops and our high streets further, particularly in areas that require new investment to bring them back to life."
The Treasury has been sounding out the retail industry on an online sales tax since February saying it is keen to hear the arguments for and against, as well as how it could work.
It said no decision has been made.