Sainsbury’s boss attacks Shein’s e-commerce tax loophole Author: Proactive Investors

Proactive investors – J Sainsbury PLC (LON:) boss Simon Roberts has joined a growing number of business leaders calling for the removal of a tax loophole that benefits overseas online retailers.

Under current tax rules, consumers can place online orders from overseas retailers worth less than £135 and not pay duty, helping businesses such as fashion giant Shein to grow.

A similar rule applies in the EU, although the threshold is €150.

This has allowed overseas e-commerce groups to avoid high customs duties by sending shipments directly to consumers rather than sending them in bulk to warehouses that would then transport them.

In response to the legal loophole, Roberts said: “All retailers should be playing by the same rules.

“I want to make sure that the loopholes that are currently in place are closed for some companies that don’t pay their taxes properly, so that everyone has a level playing field.”

Other business leaders such as Next’s Simon Wolfson and Dragon’s Den’s Theo Paphitis, owner and chairman of Ryman and Robert Dyas, have spoken out against the legal loophole, calling on the government to reconsider it.

Shein is currently preparing for an IPO in London, having filed regulatory paperwork last month.