Zimbabwe Broadcasting Corporation
| Spotlight on clothing import tax |
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| Tuesday, 21 February 2012 19:12 |
 Economic analysts have urged government to come up with a win-win solution on import tax for clothing items set in the 2012 National Budget as it poses both negative and positive impacts on dependent economic sectors. The call follows the controversy that has arisen from the removal of clothing items from the travellers rebate list as travellers are being extensively searched. A section of travellers and consumers feel that the measures aimed at protecting the local clothing industry are futile saying the local clothing industry is non-existent. Read also: Biti, ZIMRA slammed On the other hand, the Clothing Manufacturers of Zimbabwe has maintained that the sector is competitive and slowly recovering following years of uncontrolled imports of cheaper clothing and high inflation. An economic analyst, Mr. Prosper Chitambara said government is in a tricky situation as the textiles industry is struggling while there is an informal economy also being supported by imports. “It's a double-edged sword, you want to protect industry but this is also negatively impacting on the non-formal economy. Government should engage all stakeholders to come up with a win-win situation,” said Mr Chitambara. Another economic commentator, Mr. Johannes Chiminya says local industry should be protected at all costs since the country has been virtually importing everything, thereby exporting jobs and money. “The local clothing industry is a whole chain from cotton farmers, so they will suffer and workers will be out of employment,” Mr Chiminya said. While government has announced that it will scrap surtax in July thereby reversing its measures, industry will continue to be at loggerheads with government policies. It appears there is inconsistency in government polices and lack of medium to long term solutions on resuscitating non-performing economic sectors that have great potential and a large market. Foreign firms look set to benefit from disharmony between the Medium Term Plan, the 100 billion dollar economic vision and short term budgetary measures. At its peak in 1999, the local clothing manufacturing industry supported 35 000 employees, but the numbers have since dwindled to 9 000. Only early this year, clothing companies had begun to witness a turn in fortunes with more firms registering with the National Employment Council for the sector amid a resurgence in production.
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