Chinese E-Commerce Platform Temu Under Fire for Alleged Tax Loopholes in South Africa

South African retailers have raised concerns about the Chinese e-commerce platform Temu, accusing it of leveraging import tax loopholes to undercut local businesses, as reported by News24.

According to Etienne Vlok, a national industrial policy officer for the Southern African Clothing and Textile Workers Union, there are allegations that Temu, along with another Chinese online platform Shein, have been exploiting tax regulations to offer significant discounts and gain a competitive edge in the market.

Temu, which entered the South African market in January, has swiftly gained traction by providing attractive pricing on a wide range of products. However, this rapid growth has sparked backlash from local retailers who claim unfair competition practices.

The concerns raised by South African retailers have urged calls for urgent revisions to tax laws governing small item imports, aimed at creating a level playing field for local businesses facing pressure from international e-commerce giants like Temu and Shein.

PDD Holdings Inc., the Chinese tech giant backing Temu’s global expansion, has not yet responded to queries regarding the controversy. Temu’s aggressive marketing strategies have extended to the global stage, with recent advertising campaigns during high-profile events like the Super Bowl in an effort to sustain growth in key markets.