Local retail industry stakeholders have welcomed intervention by the department of trade, industry & competition that will see international e-commerce retailers taxed for small packages at the same rates as the fees levied on large orders. 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”. “We are fully supportive of free market dynamics, especially when they benefit entrepreneurs,” said Rael Levitt, CEO of Inospace , a logistics firm with a strong focus on last-mile fulfilment.
“It is crucial that local businesses are given a fair chance to compete. These new regulations are a necessary step to ensure South African companies can operate on a level playing field.” The interventions follow collaboration between various industry players and the South African Revenue Service (Sars).
“We have been working closely with Sars and customs to ensure we operate on a level playing field,” said Anthony Thunström, CEO of TFG, which owns brands such as Foschini and Bash. “Over the last few months, there has been significantly better enforcement from Sars and customs.” 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 fo.
