Petition started against SARS closing tax loophole on Temu and Shein

A petition's been launched as the South African Revenue Service (Sars) gears up for a tax crackdown on retailers Shein and Temu.

South Africans buying products from the Chinese online retailers are set to pay far more for their orders from next month.

A recent court judgement will see Shein and Temu pay standard import taxes on goods under R500, compared to before when they could get clothing parcels of this size through customs with a 20% import duty and 0% VAT.

From 1 July, all clothing parcels will be subject to an import duty of 45% plus VAT.

The petition for Sars not to increase tax on smaller orders says the reason consumers buy from these platforms is precisely because they cannot afford clothes from local businesses.

Started on 10 June, it has just shy of 15 000 signatures so far.

"As citizens and consumers, we recognise the importance of taxation in funding government services and programs. However, we believe that imposing additional taxes on clothing parcels would have detrimental effects on individuals, businesses, and the economy at large."

Petition for SARS not to increase tax on Temu and Shein orders

The petition also claims that the move would be detrimental to local couriers delivering those clothing orders as well.

The Money Show interviews Garry Marshall, chairperson of the South African Express Parcel Association (SAEPA).

Marshall says while a major impact on volumes coming into the country due to the new duties would affect them, he doesn't believe this scenario will play out.

SAEPA is more concerned about the system changes needed in view of the short deadline given.

"The issue here is about ecommerce.. And let's put something else to bed - we as an industry don't have an issue with the 45%. We understand the pain the local clothing, textile and associated industries have been through over the last few years.

"We as an industry want to be part of making things positive for everybody."

"The timing however, is a nightmare for us.because there are technicalities in terms of how you submit this data... We would have loved to have been part of the consultation process; in the future that's what we're after."

Garry Marshall, Chair - South African Express Parcel Association