The Indian government is likely to introduce taxes and customs duties that could total to 50% on products ordered from Chinese e-commerce platforms, Economic Times reported.
This is part of the government’s efforts to crack down on the purchase of illegal imports. Many Chinese e-commerce platforms were reportedly shipping goods ordered by Indians, claiming they were “gifts” with a value of less than Rs 5,000 (USD 72.50).
The tax would be levied on buyers at the payment stage, two people familiar with the plan told ET. Chinese retailers Club Factory, AliExpress and Shein could be affected by the move.
One person familiar with the matter told ET the government is looking to rope in payment gateways on the scheme.
At its peak, about 200,000 Chinese products were shipped to India every day compared with about one million a day delivered by Indian online retailers including Flipkart and Amazon. However, the shipments from China began to fall after the government began the crackdown in January.
According to a Bloomberg report courier shipments worth Rs 100,000 or less to Mumbai airport fell by 55% in Q1 of 2019.