UK Retailers Demand Swift End to Tax Exemption on Low Value Imports Shein and Temu Face Scrutiny

Leading UK retailers including Primark, Currys and Boohoo have publicly criticised the government for deferring the abolition of a key tax break on low value imported goods until 2029. The policy, which exempts parcels under £135 from customs duty, has enabled fast growing Chinese brands such as Shein and Temu to undercut domestic competitors. British retail groups argue this exemption is severely distorting the market at a time when 1.6 million parcels enter the UK each day, double the volume of the previous year.

The British Retail Consortium, representing many major high street names, has urged immediate action to scrap the so called de minimis threshold. Industry leaders warn that delays are hindering fair competition and threatening the survival of physical retail, which already faces mounting challenges. Concerns extend beyond commercial advantage; many believe shoppers are exposed to imported goods that may not meet stringent UK environmental or ethical standards.

George Weston, chief executive of Associated British Foods, owner of Primark, described the four year delay as unacceptable. He cautioned that prolonging the current regime would only add to the harm already experienced by UK retailers. Weston welcomed the government’s long term commitment to close the customs loophole, but called for accelerated implementation to safeguard the high street’s future.

Boohoo owner Dan Finley also voiced frustration at the protracted timeline, referring to Shein and Temu as major disruptors whose practices have impacted both Boohoo and other British digital and physical retailers. Finley highlighted the inconsistency, noting UK sellers have lost access to low value exemptions in the US and EU while overseas rivals continue to benefit when selling into the UK. He stressed that hastening these changes would boost Treasury revenues and address the growing burden on taxpayers.

The chief executive of Currys, Alex Baldock, joined the chorus, calling for the government to act more quickly on both the de minimis threshold and reforms to business rates. Both measures, insiders argue, are critical to restoring fairness to the sector and aligning UK trade policy with international partners. The government estimates that removing the exemption could generate around £500 million annually for public finances, though officials are mindful of the possible inflationary effects of tighter import controls. However, government analysis suggests any price impact for consumers will remain modest.

As global peers such as the US and EU move to remove their own low value import regimes, pressure is mounting on the UK government to protect British businesses and level the playing field. Industry leaders maintain that swift action is essential to defend the integrity and competitiveness of UK retail against the rising tide of cross border digital commerce.