Superdry boss Julian Dunkerton has insisted Shein is being allowed to “dodge tax” and has called on the government to take action.
Speaking to the BBC, the CEO said the fashion retailer was benefitting from an unfair advantage due to import duties not being charged on the low-value parcels it sends directly to overseas shoppers.
While the fast fashion giant declined to comment, it has previously claimed its success is down to its “efficient supply chain” rather than tax exemptions.
The Treasury insisted tax policies need to balance the interests of retailers and shoppers.
Dunkerton said it would be in the UK’s interests to remove the tax loophole utilised by the chain.
The Superdry boss said: “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.”
As it stands, shipments worth under £135 sent directly to UK customers are not charged import duties, while companies bringing in larger batches of goods are.
Shein has previously claimed it fully meets all of its UK tax liabilities.
In July, business secretary Jonathan Reynolds voiced concerns over the tax “loophole” used by the brand.
Speaking to Times Radio, the politician said if Shein committed to a London IPO, it would be expected to adhere to “ethical and moral targets [on] all business aspects”.
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