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Taxes cripple Zimbabwe’s textile and apparel industry

Zimbabwe’s textile and garment industry is facing rough weather due to heavy taxation and is on the verge of witnessing thousands of job losses and several shop closures. Importers have called for liberalization of tax laws that govern import of fabrics and garments. They want a level playing field that can enable them to stay competitive with their neighbors in the region. Current tax slabs are up to 60 per cent. They threaten to drive traders and industrialists out of business. Thousands of people earning their livelihood in this sector stand to lose their jobs.

Zimbabwe’s textile and clothing sub-sector consists of three components: production and ginning of cotton, transformation of lint into yarn and fabric, and the conversion of fabric and yarn into garments.
Other problems plaguing the industry are: poor performance, low productivity, out of date technology, and lack of investment and government support. An increasing number of textile mills in the country is closing down. Zimbabwe is finalising the new prices for different grades of cotton ahead of the beginning of the selling season.

 
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