South African retailers have called on the government to close tax loopholes over concerns that Chinese e-commerce platform Temu is exploiting the country's rapid growth, News24 reported.
Similar concerns have been raised about Shein, another Chinese online platform, according to News24. Etienne Vroc, national industrial policy officer for the Southern African Clothing and Textile Workers' Union, told the publication that the government should consider urgent changes to tax rules for small goods to ensure fair competition for local businesses. .
The Chinese retailer disagreed with the suggestion that it relied on the so-called de minimis rule, which allows low-value goods to enter South Africa while avoiding customs declarations and duties.
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“A key driver of our rapid expansion and market acceptance is the supply chain efficiency and operational capabilities we have developed over many years,” Temu spokesperson Kieran Powell told Bloomberg News. said in an email.
The online shopping giant, backed by China's PDD Holdings, has been offering deep discounts in South Africa since its launch in January. The company has expanded its global footprint to 49 countries and recently sought to maintain growth with U.S. consumers by advertising during the Super Bowl.
“We welcome and support any policy adjustments by lawmakers that are in the interests of consumers,” Powell said. “We believe that as long as these policies are fair, they will not impact competitive business outcomes.”
© 2024 Bloomberg
