UK tax loophole used by Shein will not be closed until October 2028 - FT中文网
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UK tax loophole used by Shein will not be closed until October 2028

Retailers say slow pace of action undermines efforts to rejuvenate high streets
00:00

{"text":[[{"start":9.1,"text":"A tax loophole that retailers have argued gives online giants such as Shein an unfair advantage will not be closed for more than two years, prompting claims that the government is undermining efforts to rejuvenate Britain’s high streets."}],[{"start":23.299999999999997,"text":"The Treasury on Tuesday said it would begin charging import duties on small parcels sent to the UK worth less than £135 from October 2028, bringing the original date forward from March 2029."}],[{"start":37.9,"text":"It also rejected a call by a host of retailers, including Marks and Spencer, Argos, Next and Primark, to introduce a temporary flat fee to counter what they claim are waves of imports that avoid local taxes and potentially bypass safety standards."}],[{"start":53.55,"text":"The move has underscored how the government has struggled to cope with the billions of parcels arriving in the UK each year. Chinese retailers such as Shein and Temu have exploded in popularity in recent years, selling cheap goods made in low-cost regions directly to consumers and taking advantage of the duty exemption for parcels worth less than £135."}],[{"start":74.9,"text":"Online retailers have argued that selling direct to consumers keeps inflation low when consumers are worried about the cost of living."}],[{"start":83,"text":"But high street retailers have pressured the government to revamp the current system, saying it gives overseas online rivals an unfair advantage because competitors can avoid import duties and tough standards checks."}],[{"start":96.1,"text":"Overseas retailers such as Shein and Temu have denied intentionally selling any unsafe items and say they have taken steps to strengthen their systems."}],[{"start":105.3,"text":"Chancellor Rachel Reeves promised reforms in last year’s Budget but only committed to a detailed framework by March 2029."}],[{"start":113.35,"text":"The new deadline “does not go far enough. UK retailers cannot afford to compete on an unfair playing field against importers not paying tariffs,” said Helen Dickinson, chief executive of the BRC, the lobby group."}],[{"start":126.8,"text":"The Treasury said it had listened to the retail industry and that bringing forward changes to low-value imports “targets cheap imports and puts Britain’s high streets first.” "}],[{"start":136.95,"text":"“This action tackles the unfair competition and dodgy businesses that are doing real damage to our high streets,” said Dan Tomlinson, Treasury minister."}],[{"start":145.89999999999998,"text":"“This is so dispiriting,” said George Weston, chief executive of Associated British Foods, which owns fashion chain Primark. He added that the chancellor was missing out on hundreds of millions in potential revenue for more than two years."}],[{"start":160.99999999999997,"text":"The government has estimated that volumes for goods under the £135 UK threshold have tripled in the three years to 2024 to about 1.6mn a day. "}],[{"start":171.69999999999996,"text":"“If the government expects to be seen as serious about rejuvenating town and city centres and preserving UK jobs then ministers must examine how this unacceptable timeline can be accelerated and show more support for UK retail,” Weston added. "}],[{"start":187.84999999999997,"text":"The EU is imposing a temporary duty of €3 per item bought online below €150 from the start of July. The bloc has pledged to fully overhaul its regime for low-value imports from 2028."}],[{"start":207.94999999999996,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782276058_9296.mp3"}

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