Tax hike on overseas shopping drives consumers toward domestic products

Demand has fallen following the tax increase imposed on overseas e-commerce platforms. Consumers have begun to turn to local alternatives.

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Tax hike on overseas shopping drives consumers toward domestic products

The tax hike imposed on purchases made from overseas online shopping platforms has significantly affected consumer demand.

This new regulation, which has reduced interest in powerful online marketplaces, particularly in China, America, and Europe, has led to a preference for local merchants.

With the Customs Law No. 4458, which came into effect on August 21, the limit for purchases made from abroad via express cargo was reduced from 150 Euros to 30 Euros.

While the tax rate for shipments from the European Union was set at 30 percent, this rate was increased to 60 percent for products coming from countries outside the EU. This regulation has increased the costs of overseas shopping.

According to a report by Özge Esen from Hürriyet, industry representatives stated that this tax increase has caused serious changes in shopping habits.

While there have been major drops in sales in categories such as books, accessories, sports and camping equipment, and electronics, interest in local merchants has increased.

TOBB E-commerce Council Member Seyhun Özkara said, "We are observing a significant decrease in consumer purchases, even for products under 30 Euros. Sales of Chinese-made products, in particular, have declined significantly. The tax hikes and the decrease in overseas shopping limits have increased the costs of cheap products imported from China. This has led consumers to turn to local alternatives" said.

The competitive power of Chinese-made products has weakened, especially in low-cost items such as electronic accessories and small home appliances.

News Source: 12punto