Update on tax rules for Shein and Temu as UK shops respond

Shein is famous for very low prices.

UK shops want the Government to close a tax loophole on small packages.

The 'de minimis' rule lets overseas shops send small parcels worth less than £135 to the UK without paying import tax.

UK high street shops say this helps companies like Shein and Temu, which sell very cheap goods from China.

Last year, the Chancellor said the loophole would close in 2029, but now it will close in October 2028.

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The Government says it changed its plan after talking to the industry to make competition fairer.

Shops say this is still too slow and want the change to happen sooner.

The US already closed this loophole, and the EU will do it soon.

From July 2026, the EU will charge a small customs fee on low-value goods until July 2028.

George Weston, Primark's parent company boss, said this is very disappointing.

The current system hurts UK high streets and loses the Government a lot of money.

The Government must help UK shops and jobs by changing this timeline.

The British Retail Consortium boss said bringing the timeline forward by six months is not enough.

UK shops cannot compete with importers who do not pay tariffs.

The Government also started a review of how VAT is collected for online marketplaces.

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