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Picture: 123RF/FOTO MIRCEA
Picture: 123RF/FOTO MIRCEA

Fashion can be a taxing business and in this edition of Business Law Focus, host Evan Pickworth interviews Carlyn Frittelli Davies and Mansoor Parker from ENS on the industry’s battle between profit, people and planet.

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The Context

SA consumers have expressed dissatisfaction with the announcement from the SA Revenue Service (Sars), in reaction to the request from the retail clothing textiles, footwear and leather (RCTFL) sector, that clothing imported through e-commerce platforms such as Shein and Temu will attract VAT from September 1 2024, and full customs duties of 45% from November 1 2024. This type of government reaction is not limited to SA as countries turn to tax systems to protect local industries from fast fashion.

Meanwhile, while textile waste is growing in SA, the issues are unique and centre on protection of the industry against the influx of more affordable clothing. It is hoped that the increase in custom duty and VAT for “small” clothing imports will level the playing fields for our local industry. 

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