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UK retailers call for £2.60 small parcels charge to close customs loophole

M&S, Primark and Next want government to close exemption benefiting Chinese rivals

Marks and Spencer, Next and Primark are among a host of British retailers that have called on the government to impose a charge of £2.60 on low-value goods from overseas to close a tax loophole the high street chains argue gives online giants such as Shein an unfair advantage.

The companies, along with Argos, Currys and Halfords, are among 15 signatories who have written to Prime Minister Sir Keir Starmer and chancellor Rachel Reeves urging them to apply a flat fee to small parcels worth less than £135, which are currently exempt from import duties and avoid tough customs checks.

In the letter, sent last Friday and seen by the FT, the retailers argued the move could also boost the UK’s public finances by at least £1.7bn.

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