Julian Dunkerton, CEO of Superdry, argues for UK government intervention on Shein’s alleged tax advantages.
- He claims Shein benefits from a tax loophole on low-value imports, unlike competitors.
- Shein has previously attributed its success to a streamlined supply chain, not tax benefits.
- The UK Treasury emphasises balancing retailer and consumer interests in tax policy.
- Business Secretary Jonathan Reynolds has highlighted concerns over similar tax issues.
Julian Dunkerton, the CEO of Superdry, has publicly urged the UK government to address and remove a tax loophole that allegedly favours the fast fashion giant Shein. Dunkerton claims that Shein benefits from import duty exemptions on low-value parcels sent directly to customers, which he believes creates an unfair competitive advantage against UK-based companies.
Specifically, Dunkerton points to the ability of Shein to send individual parcels to UK consumers without incurring import duties if the shipment is valued under £135. This, according to him, allows Shein to achieve substantial turnover in the UK market without contributing appropriate taxes. He described the situation saying, “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.”
In its defence, Shein has previously stated that its operational success derives from an efficient supply chain rather than from any tax exemptions. Nevertheless, Dunkerton’s comments reflect growing concerns about the impact of such tax policies on domestic retailers who must import goods in larger batches and face higher duties.
The UK Treasury has acknowledged these concerns by emphasising the necessity of balancing the interests of both retailers and consumers in its tax strategy. While Shein has refrained from commenting directly on this occasion, previous statements stress compliance with UK tax obligations.
Adding to the discourse, Business Secretary Jonathan Reynolds has previously voiced apprehensions about the tax practices associated with Shein. He indicated that should the company pursue a public offering in London, adherence to ethical and moral business standards would be expected.
The debate highlights ongoing tensions and challenges in balancing fair taxation with international business operations.
