It’s a blow for Takealot in South Africa as SARS delays a 45% tariff on cheap imported goods from Chinese sites Temu and Shein …
with a series of never-ending sponsored posts. Due to what Takealot in South Africa describes as a tax loophole, they’re also demonstrably cheaper, too., SARS was going to increase its Customs and Excise duties on small orders of less than R500 from these Chinese websites. As a result, it was anticipated that affordable items originating out of the Far East would take a big hit.Takealot in South Africa is taking action against Far Eastern eCommerce websites.
According to the South African International eCommerce Association , SARS is going to ‘engage with stakeholders’ before implementing the 45% tariff increases. This follows months of maneuvering to eliminate the Chinese companies’ competitive advantage. Many local companies argue they don’t have to pay the same import duties and this represents a huge advantage.The influx of cheap Chinese goods shows no sign of stopping due to tax advantage they currently hold.
Allegedly, Temu and Shein break up even large orders into several smaller quantities to ensure they don’t exceed the R500 limit. Packages under R500 are only taxed at 20% versus 45%, plus 15% value-added tax. Afterwards, they combine the orders again and ship to clients. Consumers always prefer lower-priced items, and this is putting local retailers like Takealot in South Africa under a great deal of pressure.
Of the approximately 100 000 packages coming into South Africa per day, 40% are from Chinese firms, Temu and Shein. Beyond price increases, an additional concern is higher tariffs could create indirect job losses on the courier side. Nevertheless, local retailers have welcomed the proposed tax change, saying it is necessary to create an equal playing field.
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