Retail chiefs demand end to Shein tax loophole

Retail chiefs demand end to Shein tax loophole
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Retail chiefs demand end to Shein tax loophole
Published: Feb, 08 2025 21:51

Summary at a Glance

Retail chiefs demand end to Shein tax loophole Ministers are under pressure from some of Britain's largest retailers to bring an immediate end to a customs tax loophole that benefits Singapore-based online fashion group Shein.

Fears remain that Shein's products are being made in unsupervised conditions with cheap labour in mainland China, undercutting even the cheapest fashion on Britain's high streets and home-grown websites.

The concession allows Shein, most of whose products are made in China, to post parcels direct to UK shoppers without paying duty.

Goods from Shein and Chinese shopping platform Temu enter the UK free of duty if the value of the parcels is less than £135.

But Ministers face a backlash from British retailers, who face big issues because of Chancellor Rachel Reeves' Budget, which raised employers' National Insurance Contributions and made it largely uneconomic to employ part-time workers.

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