A level playing field makes sense, and domestic companies are at a disadvantage if their local profits are taxed while foreign companies' "local profits" are taxed offshore at a lower rate.

That said, this doesn't level the playing field, it tips it towards local companies. The tax on business revenues should apply to domestic companies as well, and it should apply to businesses of all sizes. If it has to be netted against taxes on earnings ("tax is the larger of...") to make it not punish local businesses then they should do that.

Anything else harms the consumer by distorting the market.