Superdry PLC (LSE:SDRY) boss Julian Dunkerton has slated fast fashion firm Shein Group over a “loophole” allowing it to avoid taxes on parcels sent to customers from overseas.
He argued the UK was “essentially” allowing Shein “to come in and be a tax avoider” in a BBC Radio 4 interview.
Shein is not charged import duties on parcels it sends directly to consumers in the UK, given these are often low-value and do not exceed a £135 threshold.
Dunkerton slated the rules for not covering larger companies, pointing to those such as Shein with billion-plus-pound turnovers.
“Personally, I would force them into paying import duty, VAT and possibly even an environmental tax,” he said.
Shein, which was founded in China and subsequently relocated to Singapore, has appeared to gear up for a stock market listing recently.
Having faced scrutiny over plans to list in the US, the firm is reportedly now eyeing London for a float.
Dunkerton’s calls come as retailers in the US and EU increasingly risk being undercut by low-cost Chinese firms able to take advantage of such tax exemptions.
Shein has previously said it complies with all UK tax rules, while a Treasury spokesperson said the regime “balances reducing burdens for businesses and consumers buying lower-value goods from overseas with the interests of UK businesses”.