Chinese e-commerce giant, Alibaba, has begun taking action against thousands of sellers on its platforms who shipped articles to India in guise of ‘gifts’ to avoid paying taxes and duties on them, reports Times of India (TOI).
The Indian government exempts gifts valued below Rs 5,000 from payment of taxes and duties. This provision allows non-resident Indians to send gifts to their relatives in India without additional expenditure.
“AliExpress, as a marketplace, respects local regulations and laws and forbids any illegal activities by sellers on its platform. AliExpress has strict measures in place to take action against items that contain descriptions that encourage tax avoidance. Any infringing sellers found on the platform face penalties including store closure,” said a company spokesperson to TOI. AliExpress is an online retail service owned by Alibaba.
Not cheap any longer
To prevent illegal sales, the Indian government is also considering a proposal to impose restrictions on the purchase of such goods from Chinese E-commerce firms like Club Factory, Shien and Aliexpress.
This move is expected to protect the local manufacturing industry and prevent violation of Indian laws by the Chinese companies. Also, the government is looking to set up twenty export hubs in collaboration with India Post to help Indian sellers to sell their wares across the border.