A new report has showed that the tax burden has increased 65% on Britain's largest retailers since 2005. Retailers are facing problems because of the shift in business taxes towards indirect taxes and business rates.

Moreover, those in Hundred Groups have a total tax rate of 59% in comparison to an average of 39% across all industries in the group.

The government has reduced the corporate tax rates, but still the payments of corporation tax by these retailers have increased 11% over the period. Also, business rates and employers national insurance contributions have increased by almost 80% since 2005.

As per recent statistics on business rate contributions, the rates have soared to more than 30% between 2008 and 2010.

Richard Podd, director, PwC Newcastle, said, "Governments looking for stable tax revenues have rebalanced business taxes so there is less reliance on corporation tax, which is inevitably volatile as it is dependent on profits".

Retail in the U. K. provides domestic employment and also boosts the confidence of consumer. Whereas, high business rates put a significant burden on those who are still trying to balance physical stores with online retail.

The report was presented by PricewaterhouseCoopers and revealed increased burden on retailers because of taxes outside corporation tax.