Sars takes the shine off Shein - TechCentral

Shine Off Shein News

Sars takes the shine off Shein - TechCentral
SheinSarsEbrahim Patel
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Local retail and logistics industry stakeholders have welcomed an intervention to protect South African retailers.

The move is an attempt to “level the playing field” for local retailers following criticism that Chinese firms Shein and Temu are “abusing” tax loopholes to gain an unfair advantage in the local market by allegedly breaking up large shipments into “small packages”., a logistics firm with a strong focus on last-mile fulfilment. “It is crucial that local businesses are given a fair chance to compete.

The interventions follow collaboration between various industry players and the South African Revenue Service . South Africa has a vibrant e-commerce sector, with both homegrown and international players serving local consumers. This year has seen rivalry intensify with the entrance of large foreign players, with China’s Temu launching in January and US giant Amazon launching an online marketplace in May.

“Everyone has to pay the full customs duties and the full VAT,” said outgoing trade minister Ebrahim Patel, according to a report in the Sunday Times at the weekend. “This ensures South Africa is not left poorer as a result of any gaps in our regulatory environment.”

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