Leading British retailers have called on the government to accelerate reforms to import tax rules in an effort to support the domestic high street sector. Companies including Asos, Marks & Spencer, Primark, and Next have jointly urged officials to close what they describe as a loophole that allows overseas online sellers to ship low-value parcels into the UK without paying import duties.

The issue centers on a current exemption permitting goods valued under £135 to enter the country duty-free, a policy that benefits foreign-based e-commerce platforms such as Chinese firms Shein and Temu. Representatives of the British retail industry contend that this advantage has created uneven competition, putting pressure on UK retailers who contribute to the economy through employment, local taxes, and import duties.

In a letter addressed to Prime Minister Rishi Sunak and Chancellor Jeremy Hunt, the group proposes introducing a nominal fee of £2.60 per small parcel arriving from abroad. They assert that updating the tax system in this way would not only level the playing field for domestic businesses but would also generate approximately £1.7 billion annually in government revenue.

The retailers emphasized that the changes could be implemented swiftly, offering a timely solution to challenges facing physical stores and established UK brands amid a surge in overseas online shopping. The move reflects broader concerns regarding the future of Britain’s high streets as consumer habits evolve in the digital age.

Government officials have yet to respond publicly to the retailer’s request. Meanwhile, the debate underscores ongoing tensions between encouraging free trade and protecting local industry in an increasingly globalized market.