> They can not claim it is for the benefit of the people

Why not? Amazon dodges taxes everywhere it operates, which directly impacts us, the citizens. But it is so convenient that people use it nonetheless.

So the government is trying to help make local shops a bit more convenient to use in response, wihch would benefit the people.

Shouldn't they simply curb the (alleged) tax evasions then?

Except there is nothing simple about that. You wouldn't have all of the europe and half of the other countries in the world complaining about it if you could just "simply curb" it.