Superdry chief executive Julian Dunkerton has asserted that Shein is permitted to “dodge tax” and has urged the government to intervene.
In an interview with the BBC, Dunkerton stated that the fashion retailer enjoys an unfair advantage due to the absence of import duties on low-value parcels shipped directly to customers overseas.
The fast fashion giant did not provide a response, but it previously attributed its success to its “efficient supply chain” rather than tax breaks.
The Treasury maintained that tax policies must balance the interests of both retailers and consumers.
Dunkerton emphasized that eliminating the tax loophole exploited by the company would benefit the UK.
He remarked, “The rules weren’t made for a company sending individual parcels [and] having a billion-pound turnover in the UK without paying any tax.”
“We’re allowing somebody to come in and be a tax avoider, essentially.”
Currently, shipments valued under £135 that are sent straight to UK customers are exempt from import duties, unlike companies that import larger quantities of goods.
Shein has previously asserted that it fully complies with all of its UK tax obligations.
In July, business secretary Jonathan Reynolds expressed concerns regarding the tax “loophole” leveraged by the company.
While speaking to Times Radio, the minister indicated that if Shein were to commit to a London initial public offering (IPO), it would be anticipated to uphold “ethical and moral targets [on] all business aspects.”
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