UK Retailers Slam 2029 Import Tax Delay

British retailers have reacted with a mix of relief and frustration to the government’s announcement that it will finally close a tax loophole exploited by overseas e-commerce giants.

While the decision to impose customs duties on low-value parcels has been welcomed, industry leaders are warning that the proposed implementation date of March 2029 is far too distant to save the high street from unfair competition.

For years, UK businesses have struggled to compete against the explosive growth of ultra-low-cost platforms such as Shein, Temu, AliExpress, and Amazon Haul.

These companies ship goods directly from factories in China to British doorsteps, bypassing customs duties on parcels valued under £135 ($179) thanks to a waiver known as “de minimis.”

A Promise to Protect the High Street

In a bid to level the playing field, the Chancellor announced plans to scrap this exemption. Addressing parliament, the government pledged to stop overseas firms from undercutting domestic retailers by applying customs duty on parcels of any value.

“I will stop overseas online firms from undercutting our high street,” the Chancellor declared during the budget speech on Wednesday.

“Businesses Cannot Afford Any Delay”

However, the devil is in the details. The finance ministry revealed that the policy change would not come into force until March 2029 “at the latest,” with a consultation period scheduled to run until next year.

This timeline has sparked immediate backlash. Helen Dickinson, chief executive of the British Retail Consortium, criticized the four-year wait as “simply too long.” She pointed to government data revealing that 1.6 million parcels currently enter the UK tax-free every single day—a figure that has doubled in just one year.

“Businesses cannot afford any delay,” Dickinson warned, highlighting the urgency of the crisis facing local merchants.

Lagging Behind the World

The decision threatens to leave the UK isolated as other major economies move much faster to close similar loopholes.

• United States: The world’s biggest market for these platforms has already acted. The U.S. scrapped its equivalent waiver for imports from China and Hong Kong in May before removing it entirely in August.

• European Union: The EU recently accelerated its plans, bringing forward the date to scrap its €150 waiver from 2028 to 2026.

• Global Trends: Nations like South Africa and Brazil have also introduced new taxes on low-value international shipments to protect their domestic markets.

By sticking to a 2029 deadline, critics argue Britain risks becoming an international outlier, leaving its market exposed while others tighten their borders.

Closing the Price Gap

Removing the de minimis waiver is expected to increase operational costs for overseas platforms, eroding the price advantage they hold over traditional retailers who must pay duties on bulk imports.

Andrew Thurston, a customs duty expert, noted that the move would shrink the price gap between online giants and the high street, potentially encouraging shoppers to return to UK brands.

However, executives at major British firms, including Debenhams Group and Sainsbury’s, have expressed profound disappointment. Dan Finley, CEO of Debenhams (owner of Boohoo), stated that delaying action until 2029 translates to “lost revenue for the UK and continued unfairness in the market.”

With sales at homegrown fast-fashion brands declining as competitors like Shein soar, the industry fear is that four more years of inaction may be too long to wait.