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Ethiopia Reduces Duty on Textile Sector

Ethiopia reduced duties on imported materials for the textile and garment sector according to Sufian Ahmed, Minister for Finance and Economic Development.

The decision was made a meeting arranged between Sufian, and Mekonnen Manyazewal, Minister for Industry as well as senior representatives of the Ethiopian Revenues and Customs Authority, the Textile Development Institute and the Ethiopian Textile and Garment Association

Duties on imported textiles were reduced to 20 percent from 35 percent for garment manufacturers while no duties will be suspended for all imported spare parts required by textile and garment manufacturers.

 

The 10 percent excise tax charged upon production remains in place but in the form of a sales tax to be paid after the sale of their products said Sufian at the time who cautioned investors not to misuse the privileges.

The decision was based on research conducted by a consultant hired by the Textile and Garment Association to study the constraints on the sector.

The study was submitted to the Ministry of Industry and forwarded to the Ministry of Finance and Economic Development for decision. A committee composed of experts from the TIDI, the MoFED and from the MOI to review the findings of the research.

There are currently about 25 companies in the textile sector with the capacity to produce 46,249 tons.

Source: Fortune