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Ministry to lift excise duty on imported textiles
Sep '11
Excise duty on imported textiles is likely to be lifted by the Ministry of Industry, the Ethiopian Textile and Garment Manufacturers Association (ETGAMA) has said.

The ETGAMA proposal also calls for reduction of the customs duty from the present 35 percent to 15 percent on textiles and fabrics. Based on a study, the Association said the present import tariff of 35 percent is equal to that levied on finished products.

A high duty of 35 percent was imposed to safeguard the local industries from foreign competition, but it has actually made the local textile and garment companies uncompetitive, ETGAMA said.

It explained that the domestic production units fail to meet the necessary demand for fabrics and force the garment firms to import their textiles from foreign countries.

Similarly, textile companies face a shortage of good quality cotton, and have to buy from other countries.

Even in other countries belonging to the East African Community and the Common Market for Eastern and Southern Africa (COMESA), the import duty ranges from zero to 25 percent, and the present duty of 35 percent in Ethiopia is very high.

Fibre2fashion News Desk - India

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