In statements to the press, the president said that this measure “is resolving an issue of inequality,” referring to Uruguayan businesspeople who are complaining about the increase in the volume of online transactions abroad.

Orsi commented on the announcement by the Minister of Economy and Finance (MEF), Gabriel Oddone, to apply VAT to these purchases under the duty-free parcel system, which is currently tax-free.

This is a response by local businesses to the Temu effect, which refers to the Chinese online store that received nearly one million orders in Uruguay last year alone.

This was the claim of the Uruguayan Chamber of Commerce and Services, which pointed to a competitive disadvantage.

Currently, three annual purchases are accepted for a maximum of $200, and Oddone’s proposal entails, in addition to the VAT, increasing the number of annual transactions.

Meanwhile, Pedro Jisdonian, a representative from the opposition National Party, introduced a bill that proposes maintaining tax-free purchases but reducing the limit to only one annual purchase.

“The goal is to discourage purchases abroad to protect jobs in Uruguay,” Jisdonian explained.

“Today, the largest shoe store in Uruguay is Temu. The largest clothing store in Uruguay is also Temu, and the largest toy store is Temu. If we continue to make it easy for people to buy everything abroad, they won’t sell anything to anyone here,” he noted.

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