Postal packages make up 55% of consumer spending in apparel sector — stakeholder

AMMAN — Postal packages make up 55 per cent of total local consumer spending in the apparel sector, said President of the Textile, Readymade Clothes and Footwear Syndicate Sultan Allan.

Speaking with The Jordan Times, Allan noted that postal packages arriving to the Kingdom are subject to no more than a 10 per cent tax, while clothes that are bought in-store are subject to around 30 per cent taxation.

Allan pointed out that sector challenges are adding up over time, and therefore, there is a need for “immediate decisions that would truly revive the sector and solutions like loan postponements give only short-lived relief”.

Regarding tax exemptions for young children’s clothing and footwear, he highlighted the importance of having tax-exempt children’s clothing, which is currently charged with customs duties of over 100 per cent.

The clothing and footwear sector consists of around 14,000 apparel shops and 3,000 footwear shops, employing over 70,000 workers, according to Allan.

Sector exports reached a value of around JD1.5 billion, he said. Imports during 2022 amounted JD234 million, of which 40 per cent came from China, 21 per cent from Turkey and 14 per cent from Arab countries, according to Allan.