𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The Government has brought forward plans to close a loophole on import taxes on small packages, but retailers have warned that the timeframe is still “unacceptable”.

Current tax rules mean that retailers based overseas can send small parcels worth less than £135 to the UK without paying import duties.

Last year, the Chancellor confirmed plans to follow in the footsteps of the US and Europe and review the customs loophole, proposing to bring in reforms in 2029.

On Tuesday, the Treasury said it will bring forward the removal of the customs duty relief by six months to October 2028.

It said it has accelerated the delivery of the reforms after speaking with industry, saying that the changes “ensure fairer competition between high street and online retailers”.

However, retail bosses have said the timeframe is still too long amid pressure on high street shops.

George Weston, chief executive of Primark parent group ABF, said: “This is so dispiriting.

“A system that the government itself recognises damages UK high streets and loses the exchequer hundreds of millions in potential revenue is being left in place for two more years.

“If the government expects to be seen as serious about rejuvenating town and city centres and preserving UK jobs, then ministers must examine how this unacceptable timeline can be accelerated and show more support for UK retail.”

Helen Dickinson, chief executive of the British Retail Consortium (BRC) said: “While the Government has rightly recognised that a three-year timeline for implementing low-value import reforms is too long, bringing it forward by just six months does not go far enough.

“UK retailers cannot afford to compete on an unfair playing field against importers not paying tariffs.”

The move was part of a range of tax policy updates, which also saw the government launch a review of how VAT is collected for business trading through online marketplaces.