The South African Revenue Service’s decision to levy the same duties and taxes on clothing items under R500 as on bigger orders could cost thousands of jobs and leave consumers paying far more for imported items.
Jean-Louis Nel, tax director at Van Huyssteens Commercial Attorneys, explained that packages under R500 are taxed at 20%. “Retailers are aggrieved by this practice as any imports they do is at 45% plus 15% value-added tax.” He explained that they currently have about 100,000 packages a day coming in, of which around 40% are from Temu and Shein.
“From the courier perspective, other than volumes, the 45% tax makes no difference because we don’t gain anything out of that 45%,” he explained.
Source: News Formal (newsformal.com)
Headline Jean-Louis Nel Shein South African Express Parcel Association (SAEPA) South African Revenue Service (SARS) Temu Van Huyssteens Commercial Attorneys Investing
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