By: Natasha Archary

Bad news for South African online shoppers as tax hikes on Temu and Shein will be kicking in on 01 July.
The Chinese fast fashion shopping websites, which have grown in popularity in the country, will now be charging standard import taxes after local retailers accused Temu and Shein of exploiting a tax loophole.
This will mean that South Africans will be hit with a 45% import duty plus VAT.
As of the 01 July all orders from Temu or Shein under R500 will be slapped with the 45% import duty and 15% VAT charge.
What does this mean for online shoppers?
It will mean that an item that previously cost R100 will now cost R155 going forward.
To put this in perspective, shoppers used to pay just 20% on an item that was R100 and no VAT.
A R200 order will now cost around R333, and a R300 order will now cost online shoppers around R500.
Local retailers complained that Temu and Shein were crippling their businesses, and emphasized that the import duty and VAT were always being charged to them, and yet the Chinese brands were getting away from the charges by keeping prices low.
Garry Marshall, Chairperson of South African Express Parcel Association joins Gugulethu Mfuphi on Kaya Biz to share that there’s a petition to stop SARS from increasing the tax and VAT on Temu and Shein orders.
Listen to the conversation on Kaya Biz:
Also read: REMINDER: Water interruptions for a month awaits JHB residents



