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Committee to resolve duty tax problems of textile sector
Feb '11
The Ministry of Industry (MoI) and the Ethiopian Textile and Garment Manufacturers Association (ETGMA), have recently constituted a committee to aid in resolving the import duty tax issues which are purportedly concerning the textile manufacturing industry.

The committee consists of three ETGMA board members, three experts from the Engineering Capacity Building Programme (ECBP) and three directors of the Ethiopian Textile Industry Development Institute (ETIDI).

The combined output of the textile and clothing industries, with over 20,000 direct employees, came to $95 million for the 2009-10 fiscal, which positioned them to be the top manufacturing sectors of the country in terms of trade, production and employment generation.

The government, in order to upgrade the textile and garment industries has conferred various incentives on these industries like, long-term loans and privilege of duty free imports of machineries and spare parts.

Though the industry enjoys benefit of duty free importation, it is worthless as the producers are not that productive to take advantage of the same.

As stated under the GTP, which links development to the significance of import substitution, the sector would now start playing a significant part in the economy. But then, it is to be noted that, the present tax structure is such that it encourages imports of finished goods and discourages domestic industries.

Also that, the customs duty on import of fabrics stands to be the same as that on the import of finished textiles, at 35 percent.

Fibre2fashion News Desk - India

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