Superdry CEO, Julian Dunkerton, is urging the UK government to address a tax loophole favouring Shein.
- The loophole allegedly offers Shein an unjust advantage by exempting low-value parcels from import duties.
- While Shein credits its supply chain efficiency for its success, Dunkerton argues that tax policy gives them an edge.
- UK Treasury maintains that tax policies must consider both retailer and consumer interests.
- Business Secretary Jonathan Reynolds has also expressed concerns over the alleged tax benefits for Shein.
The CEO of Superdry, Julian Dunkerton, has called upon the UK government to reconsider tax policies that allow the fashion retailer Shein to allegedly bypass certain import duties. Speaking to the BBC, Dunkerton pointed out that Shein benefits from a tax loophole where parcels under the value of £135 are not subjected to import duties when directly shipped to UK customers. This policy, he believes, results in an unfair advantage for Shein, which markets itself as a fast-fashion giant.
Despite Shein’s refusal to comment directly on Dunkerton’s claims, the company has previously stated that its success stems from a highly efficient supply chain rather than any tax exemptions. The company asserts that it complies fully with all UK tax obligations. Nevertheless, Dunkerton insists that this loophole allows Shein to operate as a tax avoider, accumulating substantial revenue in the UK without comparable tax contributions. “We’re allowing somebody to come in and be a tax avoider, essentially,” Dunkerton claimed.
The UK’s Treasury department has responded by emphasising the need to balance tax policies between supporting retailers and protecting consumer interests. Such policies are under scrutiny as they influence the competitive landscape within the fashion industry, particularly for those companies importing large volumes of goods in bulk yet still facing different tax treatments.
In July, further concerns were aired by Business Secretary Jonathan Reynolds, who suggested that should Shein decide on a London IPO, it would be expected to meet ethical and moral standards across its business practices. His comments reflect a broader governmental apprehension about the implications of this tax treatment and its fairness within the competitive market.
The discussion around Shein’s tax practices continues to generate debate, highlighting the complexities of balancing fair taxation and market competitiveness.
