AMMAN -- Garment traders on Wednesday called on the government to reconsider a decision taken in July last year to impose a JD1 tariff on each kilo of imported clothes or 5 per cent of its value, whichever is higher.
Salah Hmeidan, president of the Garment Traders Association, told The Jordan Times yesterday that the decision resulted in higher costs for importers and ultimately more expensive clothes in the local market.
"The purchasing power of consumers is fading year after year and the decision led to higher garment prices," he remarked, claiming that wholesale traders and retailers are finding it difficult to sell their products as demand has dropped sharply due to the rise in prices caused by at least a 25 per cent increase in importing costs.
Before the current system was adopted, customs personnel used to assess the value of the imports and then impose a 20 per cent tax, according to Hmeidan, who said the current formula always works out higher.
At a meeting with traders and importers last week, Jordan Customs Department (JCD) Director Ghaleb Sarayreh said the current system has deprived the treasury of around JD11 million because importers are paying less tax.
In a quarter-page statement published yesterday in local dailies, the association appealed to Prime Minister Samir Rifai to reconsider the decision.
When the decision was taken, the JCD claimed the main reason for the measure was to reduce garment prices and to force importers to bring high quality products to the local market, Hmeidan said, but added that "unfortunately the opposite happened as prices surged and importers stopped importing expensive items that they cannot sell".
"We hope the government will understand our demands and study this issue seriously," he said, noting that the association proposed halving the tariff to JD0.50 per kilo during several meetings with officials.
If this system continues, consumers and traders will pay the price, Hmeidan warned.
© Jordan Times 2011
