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New import tariff to drive up winter-wear prices
Sep '10
Garment importers and retailer's are accusing the government for bringing imports within coverage of a new taxation system, which is likely to hike the prices of winter-wear by around 20-80 percent, this season.

The Customs Department on July 15 decided to subject imported clothes to a tariff of JD one per kilo. Prior to this, the practice was that the Custom Department officials first computed the value of the imported goods, which thereafter were subjected to a tax of 20 percent on that value.

Importers claim that, the new tax of JD one per kilo would definitely be more than the 20 percent tariff, which was charged earlier. The new tax structure has caused the duties payable on imports to rise, and finally the customers will have to bear the burden of the same.

Garment importers earlier sounded a caution that, if the Customs Department adopts the weight formula, this would lead to a surge in the prices of winter-wears, for the reason that winter clothes are much bulkier as compared to summer clothes.

At this point of time where domestic markets are facing meagre demands for clothing, this probable hike in the price is seen to further lower the already low purchasing power of the buyers, said an expert.

Fibre2fashion News Desk - India

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