adminon textiles and clothing following concerns raised by cross border traders.
He had increased duty on textiles and clothing on concerns that low priced imports threatened the survival of an industry recovering from a decade of economic instability.
But there was public outcry from traders in imported textiles and clothing who complained that the high tariff made imports more expensive.
The public also registered strong displeasure at the way they were allegedly abused by the Zimbabwe Revenue Authority officers who sought to enforce the requirement while cross border traders attempted to evade paying duty.
Presenting his US$4 billion 2012 National Budget Statement Minister Biti retained duty on selected imported goods as well as increasing to 40 percent +US$3 (per kg) duty on textile and clothing goods up from 40 percent +US$1. But the clothing industry’s
NEC secretary general Mr Justice Mashinti said the move was not welcome at this point and could precipitate the closure of more firms in the sector.
Mr Mashinti said that the minister had hiked duty following strong lobbying from textile and clothing manufacturers and nothing had changed since that time. He added that the industry was under threat and firms were down sizing. Employee head count, at 25 000 before 2009, is now 6 000.
“When the minister took the decision to increase duty it was after we lobbied him strongly. Notwithstanding concerns from others we feel we still need to be protected from cheap imports. The factors are still there,” he said.
Mr Mashinti said there still was continued influx of cheap imports and this was seriously distorting the business environment and affecting efforts to re-capitalise.
Association of Clothing and Textile Manufacturers Association of Zimbabwe chairman, Mr Jeremy Youmans said the frequent policies changes affected business planning.
He said if Governments slashes the tariff on textiles and clothing most companies in the sector would either close or scale down drastically.
“We need clarification on policies. At one point the minister says he is going to support us then he says is not. We need to know whether we are going to stay open and employing people.
“If the duty is slashed not many of us are going to survive for much longer. Since the announcement about duty increase we had started receiving enquiries from local retailers,” he said.
But the retailers have kept importing despite the duty increase early this month raising questions around application of the tariff. Mr Youmans said that in discussing solutions to problems following representations from stakeholders such as cross-border
traders, textile and clothing manufacturers should be invited.
Minister Biti said that he had increased the tariff on the imports to promote domestic production, protect vulnerable local industries and reduce dependence on imported products.
Last year, Zimbabwe exported US$3,67 billion worth of goods against imports of US$6,2 billion as local industry continues to face production challenges.
However, domestic production still cannot satisfy demand neither are the prices affordable to locals as costs of productions remain high due to old equipment.
Online Reporter