J Sainsbury PLC (LSE:SBRY) boss Simon Roberts has joined a growing list of business leaders calling for the closure of a tax loophole that benefits foreign e-commerce retailers.
Under current tax rules, consumers can make orders worth less than £135 online from overseas sellers and not have to pay customs duty, providing direct boosts to companies like fashion giant Shein.
Over in the EU, a similar rule applies albeit at a €150 threshold.
Foreign e-commerce groups have therefore avoided large customs bills by shipping deliveries directly to consumers instead of in bulk to storage facilities, which would then transport the parcels.
"All retailers should be working on the same basis," Roberts said of the loophole.
"I want to make sure that the loopholes that are currently in place are closed for some of the businesses that aren’t paying tax in the right way, so it’s a level playing field for everybody."
Other business leaders such as Simon Wolfson at Next and Dragon's Den's Theo Paphitis, who owns and chairs Ryman and Robert Dyas, have come out against the loophole, calling on the government to review it.
Shein is currently in the midst of preparing for an IPO in London, having filed papers with regulators last month.