The Chancellor could raise £1billion with a tax on small goods bought from Chinese online retailers, according to Deutsche Bank.
High street shops have been lobbying the Government to end a customs tax loophole that benefits retailers including Shein, Temu and PopMart, which sells the popular Labubu dolls.
Labour has said it would review rules that allow packages valued at £135 or less to avoid duties.
This means Shein, most of whose products are made in China, can post parcels to UK shoppers without paying customs duty.
Deutsche Bank said a 20 per cent tax rate ‘could see the Chancellor get closer to £1bn in additional revenues’, adding: ‘We expect Chancellor Reeves to reap some benefit from raising import duties.’
The value of such parcels rose from £1.3billion in 2023 to £3billion last year, a BBC report said. The Treasury said there would be a review update, but did not specify when.
Plea: UK retailers have been lobbying the Government to end a customs tax loophole that benefits retailers including PopMart, which sells the popular Labubu dolls (pictured)
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
References
- ^ Compare the best investing account for you (www.thisismoney.co.uk)