South Africans Defend Shopping from SHEIN and Temu Amid SARS Crackdown

• SARS has intensified efforts to tackle tax evasion by international retailers like SHEIN and Temu
• But public sentiment strongly supports these platforms, with many consumers vowing to continue shopping regardless of potential increased customs duties
• Commissioner Edward Kieswetter revealed SARS is pursuing over R3 billion in unpaid taxes while acknowledging the need for updated tax rules

Reitumetse Makwea, a Briefly News current affairs journalist in Pretoria, South Africa, covered current affairs-related news at The Citizen and Rekord Noweto for over five years.

As the South African Revenue Service (SARS) intensifies its efforts to tackle tax evasion by international online retailers, a strong wave of public sentiment is emerging in support of platforms like SHEIN and Temu.

Commissioner Edward Kieswetter recently revealed that SARS is pursuing over R3 billion in unpaid taxes from these entities.

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However, many consumers are vowing to continue their shopping habits regardless of potential increased customs duties and VAT.

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Netizens are adamant on buying from Shein and Temu

South Africans are pushing back at SARS as it continues to clamp down on international online retailers.

Twitter user @MNamkoneni expressed defiance, stating:

"We will not stop buying from Shein and Temu even if SARS can charge double Customs duties & VAT. Tell SARS to start focusing on salons, churches & spaza shops owned by foreigners with zero compliance."

Similarly, @Kgomoyamaphoto asserted:

"We South Africans will spend our money where we want."

These platforms are undeniably popular among South Africans, as many find better deals online than at local retail options.

Concerns about the local market's competitiveness were voiced by @UnityInSA, who urged SARS to consider the implications of raising import taxes:

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"Many small entrepreneurs buy from Shein & Temu to resell in SA and still make a profit."

The criticism of local retailers was echoed by several users, including @Sefara_Chokwe, who stated:

"We are tired of the monopoly of TFG, Pepkor, and Truworths."

Others, like @KingMaraton786, pointed out the high prices at traditional stores:

"The cheapest jacket there is over R1,000, but at Shein, I can get it for R300."

SARS set to update tax rules for international online retailers

In an interview with News24, Kieswetter highlighted that SARS is lagging in updating its tax rules and administrative processes to collect taxes effectively from platforms such as SHEIN and Temu.

"We are seemingly playing catch-up, but we are committed to closing these loopholes."

The commissioner's comments follow increasing pressure from local retailers and labour groups, who argue that Chinese retailers like SHEIN and Temu exploit tax loopholes to keep their prices low, creating an unfair market advantage.

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These platforms have rapidly gained popularity in South Africa, with Temu currently being the third-most downloaded free app on the Apple App Store in the country.

SARS wants fairness in the market

Kieswetter acknowledged the challenge but emphasised the need for fairness in the market.

"We understand the concerns of consumers, but our focus is on ensuring that all businesses operate on a level playing field and that due taxes are paid."

As SARS works to modernise its tax collection methods, the debate over international versus local retail prices continues to stir public opinion.

The agency's success in addressing these tax issues will be crucial in balancing the interests of local businesses, international platforms, and South African consumers.

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Source: Briefly News