Clothing, footwear sector calls for removal of service charges

AMMAN — The commercial clothing and footwear sector has called on the government to remove the 5- per cent service charges imposed on customs declarations since 2017.

“The commercial clothing and shoes sector is suffering from a four-year accumulative recession,” Representative of the Clothes, Shoes and Jewellery Sector at the Jordan Chamber of Commerce Asad Qawasmi told The Jordan Times on Sunday.

Demanding that the government provide incentives to the sector by removing the 5-per cent service charges that have exhausted it, Qawasmi said that the charges were not imposed by law but through instructions from the Prime Ministry, which can be revoked. 

He said that cancelling the service charges would reduce operational costs of commodities, encourage sellers to decrease product prices and direct the 5-per cent charges back to citizens’ pockets.

The commercial sector also demands a 50-per cent reduction of sale taxes, which would have a direct impact on consumers, revitalise the commercial sector and encourage tourist shopping, the representative added.

Reducing prices for consumers would enable Jordan to attract more tourists and compete with neighbouring countries that have low sales tax, Qawasmi said.

For his part, President of Jordan’s Textile and Readymade Clothes Syndicate Munir Dayyeh said that the sector is calling for reducing the burdens imposed on the commercial sector, especially after a notable fallback in sales. 

“Applying [the service charges] creates an unbalanced situation, as some imports are exempted from charges while the charges are applied to others,” Dayyeh added.

The cancellation of customs service charges would enhance the commercial sector and the country’s economy in general, as economic sectors would be prompted to work and produce in larger amounts, he said. 

He added that to encourage citizens to purchase from the local market, the burden on the commercial sector should be lowered to enable it to sell products at affordable prices.