- The special customs valuation rule allowing goods for personal use to be taxed at 60% of their retail price will be abolished.
- This rule was originally intended to balance tax treatment between commercial and personal imports.
- Growth in e-commerce has narrowed the price gap between foreign and domestic retailers, creating competitive imbalances.
- Some individuals have abused the rule by falsely claiming commercial goods as personal use.
- The 2026 Tax Reform Proposals will eliminate this special treatment to address these issues.
Source: pwc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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