New business secretary Jonathan Reynolds has voiced concerns over a tax “loophole” used by fast fashion retailer Shein.
Speaking to Times Radio, the politician said if Shein committed to a London IPO, it would be expected to adhere to “ethical and moral targets [on] all business aspects”.
Reynolds explained he would want to discuss the matter with the fast fashion giant if it was considering more business activity in the UK.
The cabinet minister said: “When any company is active in the UK, our aspiration should be that we regulate that company from the UK.”
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The news comes as the retail industry continues to call on the government to review the methods utilised by overseas websites that ship low-value goods directly to avoid paying import duties.
Shein is currently mulling a London IPO, after its original plan to list in New York collapsed following opposition from US lawmakers.
However, last week it was reported that the EU was planning to impose a customs duty on cheap goods in a move that is likely to impact imports from online retailers and harm Shein’s potential listing.
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