Julian Dunkerton, CEO of Superdry, calls for UK government intervention against Shein’s tax advantages.
- Shein benefits from import duties not charged on low-value parcels sent to UK consumers.
- The Treasury asserts the need to balance retailer and consumer interests in tax policies.
- Dunkerton highlights the need to remove tax loopholes to ensure fair competition.
- Shein, while previously stating tax compliance, has not commented on Dunkerton’s latest remarks.
Julian Dunkerton, the CEO of Superdry, has expressed concerns about the fashion retailer Shein exploiting a tax loophole in the UK. He has urged the government to eliminate this advantage to level the playing field for all market participants and ensure fair competition.
The core of Dunkerton’s argument is that Shein benefits from import duties not being charged on parcels valued under £135, which are sent directly to UK consumers. This gives Shein an unfair market advantage over companies that import larger batches of goods subject to import duties.
The Treasury has responded that existing tax policies are intended to strike a balance between the interests of retailers and consumers. However, Dunkerton insists that removing the tax loophole utilised by Shein is in the UK’s best interests to prevent unfair competitive practices.
Despite refusing to comment on the CEO’s statements, Shein has, in the past, claimed to fully comply with UK tax legislation, attributing its market success to an efficient supply chain rather than any tax advantages.
In July, Business Secretary Jonathan Reynolds noted concerns regarding the tax loophole. He stated that should Shein proceed with a planned IPO in London, it would be expected to adhere to ethical and moral business standards.
The call for action highlights the need for equitable tax practices to maintain fair competition in the market.
