Superdry boss Julian Dunkerton calls on government to stop fast-fashion rival Shein from ‘dodging tax’

Dunkerton said its rival Shein was reaping the rewards of an “unfair advantage” due to import duties not being charged on the low-value parcels it ships directly to consumers from overseas.

Dunkerton said it would be in the UK’s interests to ban the tax “loophole” and described Shein as a “complete environmental disaster”.

He 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.

“Personally, I would force them into paying import duty, VAT and possibly even an environmental tax.”

Shein declined to comment but previously said its success was a result of its “efficient supply chain” rather than any tax exemptions.

The fast-fashion giant also attributes its success to offering shoppers affordable fashion products.

With shipments worth less than £135 currently avoiding tax charges, the retail industry is being called on to review methods used by overseas retailers and brands selling cheap products.

Dunkerton, however, is not the first retail boss to criticise Shein as it has faced ongoing pressure over the way it ships products directly to Western countries from China in recent months.

Sainsbury’s chief executive Simon Roberts and Next boss Lord Wolfson are among those calling on the government to look at the import duty system.

Business secretary Jonathan Reynolds also raised concerns over the “loophole” being exploited in July this year and said if Shein were to consider further business activity in the UK he would want to discuss such issues with the business.

A spokesperson for HM Treasury said: “Our customs and tax regime balances reducing burdens for businesses and consumers buying lower-value goods from overseas with the interests of UK businesses.”

They added that VAT (value added tax) was charged at the same rate on all goods regardless of origin or value.