Temu in Legal Trouble for Unpaid 46 Billion UZS Tax
Temu Faces Tax Troubles: Failure to Pay 46 Billion UZS in Taxes
Initial calculations have revealed that the Chinese marketplace, Temu, has not paid approximately 46 billion UZS in taxes. The Tax Committee has taken action by sending a letter of protest to the marketplace, urging them to settle their tax payments. During a recent press conference, a representative from the committee stated that once Temu resolves their tax obligations, they will be allowed to legalize their operations.
The Deputy Chairman of the Committee, Mubin Mirzaev, highlighted the growing issue of taxing e-commerce systems globally. After conducting a comprehensive analysis of the e-commerce sector in Uzbekistan, it was discovered that several organizations, including Temu and Wildberries, had failed to pay their taxes. Wildberries, another marketplace, settled their tax arrears by paying 52 billion UZS. Mirzaev emphasized the importance of all electronic platforms fulfilling their tax obligations to operate within the legal framework.
However, the tax investigation is ongoing, and the calculated tax amounts for Temu have not been confirmed. Failure to pay taxes could result in a full investigation and further consequences for the marketplace.
In response to new regulations requiring electronic trade platforms to register as legal entities in Uzbekistan, Temu faced challenges. The platform risked being blocked due to non-compliance with the regulations set by the Cabinet of Ministers. Despite initial resistance, Temu recently registered as a legal entity in Uzbekistan, allowing them to continue their operations in the country.
Kamronbek Muhammadiev from ILMA acknowledged the registration as a positive step for Temu but emphasized the importance of settling VAT payments and integrating with tax authorities. The fiscalization process for local players took around a month, indicating potential delays for Temu to fully comply with tax regulations.
ILMA also raised concerns about Temu’s aggressive marketing strategy, which involved significant investments in advertising and price reductions. The marketplace’s expansion into foreign markets through aggressive marketing tactics could lead to increased expenditures in the coming years.
As Temu works to address its tax issues and comply with regulations, the e-commerce sector in Uzbekistan continues to undergo scrutiny and regulation to ensure fair practices and tax compliance among all players in the market.
