Superdry CEO Urges UK Government to Close Shein’s Tax Evasion Loophole

Julian Dunkerton, the chief executive of Superdry, has claimed that Shein is able to “dodge tax” and has called for government action to address this issue.

In a recent BBC interview, Dunkerton pointed out that the fashion retailer benefits from an unfair edge due to the lack of import duties on low-value packages sent directly to customers abroad.

Shein did not respond to the allegations but has previously credited its growth to an “efficient supply chain” rather than any tax advantages.

The Treasury stressed that tax regulations need to find a balance between the interests of retailers and consumers.

Dunkerton asserted that removing the tax loophole utilized by Shein would ultimately benefit the UK economy.

He remarked, “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.”

At present, packages valued under £135 that are shipped directly to UK customers are excluded from import duties, unlike businesses that import larger volumes of merchandise.

Shein has consistently stated that it meets all of its tax obligations in the UK.

In July, Business Secretary Jonathan Reynolds voiced concerns over the tax “loophole” that the company has capitalized on.

During an interview with Times Radio, the minister noted that if Shein pursued a London initial public offering (IPO), it would be expected to adhere to “ethical and moral targets [on] all business aspects.”

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