Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of potential lost tax revenue from international corporations importing large product volumes operating on a direct to consumer basis.

The Government does not hold data to estimate tax revenue losses specifically from international corporations importing large product volumes operating on a direct to consumer basis.

Such economic activity can give rise to a range of different taxes and duties, including Corporation Tax, VAT, customs duty and excise duty, and the impact would depend on the specific circumstances of each business and transaction.

HMRC actively monitors compliance with UK tax and customs obligations and uses a range of tools, including risk-based audits and data analytics, to tackle non-compliance.

The Chancellor has reviewed the existing customs arrangements for Low Value Imports, and as a result, the Chancellor announced at Autumn Budget 2025 the removal of the customs duty relief on goods imported into the UK worth less than £135. In addition to the relief removal, the government is reforming the way these goods are declared into the UK to ensure all goods are appropriately controlled. These changes will come into effect from March 2029 at the latest and are expected to raise c. £500m p.a. in each of the final two years of the scorecard period.