Temu, Shein prices to increase as South Africa closes tax loophole on 1 July
Chinese companies Temu and Shein have been exploiting a tax loophole that ends next month.
Shein app on a smartphone. (Photo by Romain Longieras / Hans Lucas / Hans Lucas via AFP)
Clarence Ford speaks with Barbara Friedman about this and other stories trending online.
Listen below.
Temu and Shein have been exploiting a tax loophole to deliver high volumes of low-cost orders.
The ‘de minimis rule’ allowed these companies to get clothing parcels under R500 through customs with a 20% import duty and 0% VAT.
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However, the clothing parcels will be taxed with an import duty of 45% plus VAT from 1 July, meaning an order of R120 will cost R166.75, according to MyBroadband.
“I am pleased about it. I really want to support local manufacturing.”
– Barbara Friedman
South Africa's Zando is being promoted as an alternative to Temu and Shein.
It offers similar services but will come without the tax implications as it goes through local portals.
Scroll up to the audio player to listen to the interview.