Audio By Carbonatix
Importers of low-value parcels destined for South Africa will soon pay value added tax, the country's tax authority said, as an interim measure to protect a clothing industry facing fierce competition from international e-commerce players such as Shein.
The move follows other countries, including the European Union, which is discussing abolishing its duty-free limit as part of a customs reform.
The South African Revenue Service said on Thursday that it "noted legitimate concerns that have been expressed in the importation of several goods, especially clothing, via e-commerce by a number of importers who have not been paying the obligatory customs duties and VAT."
This situation, it added, has resulted in "unfair competition."
Due to a high volume of e-commerce imports, SARS said it had earlier implemented a "concession" for goods valued at less than 500 rand ($27.25) which meant importers paid a flat rate of 20% in lieu of customs duties, and no VAT of 15%.

To address competition concerns and to provide clarity for e-commerce importers, SARS said it will introduce VAT in addition to the current 20% flat rate on low-value parcels on Sept. 1 as an interim measure.
Other changes include reconfiguring the 20% flat rate into the World Customs Organisation regime with appropriate duty rates by Nov. 1, it added.
Brick-and-mortar fashion and e-commerce retailers have urged South African regulators to impose a 45% import duty on all clothing imports, no matter the price, to level the playing field.
China-founded Shein, which plans to go public in Britain, attributes its success to its "on-demand business model and flexible supply chain."
Latest Stories
-
Africa has right policies for Agri-Food Systems transformation but lacks capacity to implement them
7 minutes -
Fuel prices fall as some OMCs cuts petrol to GH¢13.87 per litre
14 minutes -
Japan raises interest rate to highest since 1995
23 minutes -
€106m water project moves closer as GWCL begins stakeholder consultations in Savannah Region
45 minutes -
India blocks Telegram messaging app until June 22, government says
1 hour -
Cocoa farmers spared another blow as gov’t rejects price cut despite global slump – COCOBOD
2 hours -
While Côte d’Ivoire cuts cocoa prices, Ghana holds the line to protect farmers – COCOBOD
2 hours -
‘We had to save the sector’ – COCOBOD defends unprecedented cocoa price intervention
2 hours -
Sophia Akuffo didn’t resign over Torkornoo’s removal – Kwakye Ofosu
2 hours -
Government ends diesel fuel relief ahead of June pricing window
3 hours -
Bossman Asare resigned voluntarily, government didn’t pressure him – Kwakye Ofosu
3 hours -
Military deployed to Bawku SHS after student rampage over exam malpractice crackdown
3 hours -
Roads Ministry must disclose full details of road contracts – MFWA
3 hours -
Two jailed over armed robbery attack on New Edubiase fuel station
3 hours -
IAEA backs Ghana’s nuclear readiness amid Africa’s growing energy transition
3 hours