High sales tax biggest challenge for clothing sector in Jordan stakeholder

The sales tax financially lay burdens on Jordan’s garment traders, according to Asaad Qawasmi, a representative of the clothing, garment and jewellery sector at the Jordan Chamber of Commerce.

Calling for reducing the sales tax, Qawasmi highlighted that the “demand is weak and traders and citizens do not have enough liquidity, therefore reducing the sales tax will positively affect the local market”.

“Traffic at my store has surged during White Friday with steep offers and deals, but now the number of shoppers has significantly dropped,” Sami Hijazi, a clothing shop owner, told The Jordan Times on Saturday.

Hijazi said that around 70 per cent of his sales have decreased and he is not expecting the situation to improve.

“The very high sales tax has been our biggest challenge, even before the pandemic,” said Hala Abdullah, an owner of a clothing store.

She noted that her sales have decreased, but given her activity on social media platforms and continuous offers, she was able to stay afloat amid the ongoing “harsh” situation.

The Kingdom’s apparel and footwear industry employs around 56,000 individuals and consists of 11,800 facilities operating in different parts of Jordan, according to Asaad.