'Fiscal burden affects Brazilian apparel sector'

21 Oct '13

2 min read

The Brazilian apparel industry as of now is on track but faces the problem of fiscal burden, announced Fritz Herbold, consultant from the Hohenstein Institute of research in textile sector in Germany, during the National Service of Industrial Learning's (SENAI) International Textile, Clothing and Design Workshop, held recently in the city of Blumenau, Santa Catarina in Southern Brazil.

The SENAI workshop was organized by the Federation of Industries in Santa Catarina (FIESC) with support from the Brazilian Association of Textile Industry (ABIT).

According to a statement issued by FIESC, Mr. Herbold said the Brazilian apparel industry incurred a deficit of US$ 5.3 billion in trade balance, during 2012, despite having competence, wide industrial and entrepreneurial creativity, energy resources as well as people willing to work in the sector.

In order to become a long production chain ranging from polymer yarn to clothing, the textile sector of the country would have to incur a higher tax cost, he added.

According to Mr. Herbold, at all stages of the Tax on Circulation of Goods and Services (ICMS) in Brazil, there is a possibility of tax credit which is seldom effective.

The German consultant estimates that around 40 to 50 percent of the clothes sold in Brazil come from other countries, and having more imported products is not a problem for the country as the textile and apparel sector is internationally competitive.

During the workshop, the expert also suggested the apparel sector of the country to focus on new market niches like comfort clothing and garments for elderly, as comfort fashion does not happen by chance but is a result of careful product development.

According to the expert, comfort clothing should be such that helps in reducing the effects of extreme temperature, as the stress of heat and cold decreases the performance of the people.

The market for comfort clothing and garments for elderly is finding large consumers in Europe and the market is also strengthening in Brazil, he added.

The SENAI Santa Catarina regional director Sergio Roberto Arruda said the workshop is a part of an effort of deployment in the textile sector of the Santa Catarenese city of Blumenau, and was organized with the objective of creating a strategic path of innovation in the textiles sector.

The SENAI Institute of Technology Textile, Clothing and Design, is a program that includes, across the country, more than 60 institutes of technology and 24 innovation centers, he added.

Fibre2fashion News Desk - India

More Apparel/Garments News - Brazil...