New business secretary Jonathan Reynolds is concerned about a tax “loophole” exploited by the fast fashion brand Shein.
In an interview with Times Radio, Reynolds mentioned that if Shein were to proceed with a London IPO, the company would be expected to meet “ethical and moral targets in all aspects of business.”
Reynolds expressed his intention to engage with Shein about this issue if the company is considering expanding its operations in the UK.
He stated, “Our goal should be to regulate any company operating in the UK when it comes to business activities.”
The retail sector is lobbying the government to scrutinize the tactics employed by foreign websites selling inexpensive products to sidestep import duties.
Shein is contemplating a London IPO after facing opposition in the United States, which led to the collapse of its initial plans to list in New York.
However, recent reports indicated that the European Union intends to impose customs duties on low-cost products, a move that could affect online retailers’ imports and potentially impact Shein’s IPO plan.
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