By Kouthar Sambo
The South African Revenue Service (SARS) highlighted its new tax regulations for imports from foreign online platforms, such as Shein and Temu. According to recent reports, the move aims to protect local industries and generate revenue.
Furthermore, these changes affect consumers and retailers alike, with revised customs duties, import VAT, and de minimus rule changes.
However, economists and consumer critics have raised the question of whether this is an attack on Chinese manufacturers offering cheaper merchandise to online consumers, pushing other online shopping platforms at the back end.
Speaking on VOC’s PM Drive show, an economist, Dominic Brown, said the move follows trade wars against China and tries to mitigate against decreasingly growing China’s economy.
“If you look at the South African textile industry, there’s been a massive erosion as a result of declining tariffs to keep clothing and textile worker sectors.”
“A cheaper import to China comes at a big cost to job losses in South Africa, and the clothing and textile industry is a stark example of this situation,” stressed Brown.
Photo: Pexels
