The CEO of Superdry, Julian Dunkerton, has publicly addressed tax loopholes favouring Shein.
- Dunkerton claims the loophole gives Shein an unfair competitive advantage by avoiding import duties.
- The UK Treasury maintains that tax policies must balance retailer and consumer interests.
- Shein asserts its compliance with all UK tax liabilities despite accusations.
- A significant policy change is advocated to ensure fair market conditions.
Julian Dunkerton, the CEO of Superdry, has highlighted significant concerns over the utilisation of tax loopholes by Shein, a fast fashion retailer. Speaking with the BBC, Dunkerton pointed out that the current tax regulations allow Shein to benefit from the absence of import duties on low-value parcels. He argued that such a position affords Shein an unfair competitive advantage in the UK market.
While Shein declined immediate comment on these latest allegations, the company has previously stated that its business success is primarily due to its efficient supply chain rather than any tax exemptions. Dunkerton, however, emphasised that it’s in the UK’s interest to reassess and ultimately close this loophole, as it undermines local businesses adhering to tax regulations.
The Treasury responded by underscoring the necessity of tax policies that strike a balance between the interests of businesses and consumers. Dunkerton’s primary concern is that existing regulations inadvertently permit significant fiscal advantages to firms like Shein, which operate substantial turnovers without equivalent tax contributions in the UK.
In July, Jonathan Reynolds, the UK Business Secretary, also articulated potential ethical concerns over Shein’s use of the loophole, suggesting that any commitment to a public listing in London would entail meeting stringent ethical and moral business guidelines. This indicates a broader governmental interest in levelling the commercial playing field.
Overall, Dunkerton’s statements have amplified ongoing discussions regarding tax regulation and fairness within the competitive landscape of fashion retail. The dialogue focuses on ensuring that all participating entities operate under equitable conditions, contributing fairly to the national economy.
Julian Dunkerton’s remarks reinforce the ongoing conversation on the necessity for equitable tax policies within the UK fashion industry.
