There's a huge difference between "the heavily profitable company wins in competition" (which isn't true in all domains anyway) and "we have banned all companies except heavily profitable ones".

> Its competition that reduces profits

The revenue tax scheme sets a minimum profit level that every company is required to make. Competition can't reduce it below that level.

It's also set things up so where many companies build things in a chain of specialised companies, for example manufacturing components, assembling devices then selling those, and shipping them, the minimum profit percentage is legally required at each step, compounding.

Currently, supply chains consist of hundreds of companies working together. That won't be possible any more, as the new system forces every supply chain to merge into a self-contained conglomerate that does everything in one company.

Companies in that system will be forced to merge into giants or die, and in the end most will be giants. It's probably not the intended consquence of the policy.