Major UK Retailers Urge Reeves to Fast‑Track Closure of Small‑Parcel Tax Loophole

They say a temporary £2.60 charge on each small parcel could raise about £1.7bn a year, improve product safety, rebalance competition with overseas e‑commerce.

Overview

A coalition of 17 leading retailers sent a letter to the Prime Minister and Chancellor on Wednesday urging Rachel Reeves to accelerate plans to end the de minimis duty exemption for parcels under £135.
The firms propose a £2.60 flat charge on every small parcel sent to the UK, which they say could be introduced quickly and would raise roughly £1.7bn a year for the Treasury.
Under current rules overseas sellers avoid import tax on goods worth less than £135, and the Chancellor committed in the 2025 autumn Budget to reform the exemption with implementation expected in 2029.
Retailers point to a boom in low‑value imports—reported growth of more than 50% year‑on‑year—and to recent US and EU rule changes that they say have redirected parcel traffic toward the UK.
Companies and the British Retail Consortium argue closing the loophole would level the playing field for UK stores, strengthen product safety checks and provide revenue that could support households, while the Treasury had not published a public response.