July means that shopping from Temu and Shein is going to get more expensive for South Africans thanks to a new tax imposed by SARS. Nearly 18 000 South Africans have signed a petition calling for SARS and the government to scrap this incoming tax, a 45 percent VAT increase on Temu and Shein shipments under R500. While the tax will help local businesses, South African customers say they shop on Temu and Shein because they cannot afford local prices on clothing.
From 1st July 2024, packages valued under R500 from foreign ecommerce platforms like Shein and Temu will receive an extra 45 percent value added tax (VAT) markup when being imported into South Africa. While this latest effort from the South African Revenue Services (SARS) has been made to level the playing field between these huge international firms and local clothes retailers, South African customers say they are getting the short end of the stick. Picked up first by ITWeb, nearly 18 000 South African customers of Shein and Temu have signed a Change.
org petition aimed at the South African government and SARS, urging them to reconsider the 45 percent VAT increase on Temu and Shein. “South Africans cannot afford this, we buy from Shein and Temu because we cannot afford clothes from local businesses, the point of Shein and Temu is affordability,” reads the petition “We urge SARS to consider the broader implications of any proposed tax increases on clothing parcels. Instead of burdening citizens with additional taxe.
