Higher import tax in Morocco on Turkish textile products



Morocco recently decided to impose 36 per cent import tax instead of the earlier 27 per cent on Turkish textile and clothing products. The measure, aimed at supporting the domestic textile industry, came into effect on July 27. The tax was part of the amended 2020 Finance Bill, approved by the Moroccan government and parliament earlier this month.

Morocco’s administration of customs and indirect taxes under the ministry of economy announced the new tax rate in a statement.

Morocco and Turkey signed a free trade agreement (FTA) in 2004. The agreement took effect two years later in 2006. Since then, Morocco’s trade balance with Turkey has been largely in deficit. Minister of industry Moulay Hafid Elalamy recently said Morocco loses $2 billion annually in its trade deal with Turkey. The Turkish textile industry also caused Morocco a loss of around 44,000 jobs in 2017 alone, Elalamy revealed.

Early this year, Rabat and Ankara started negotiations to review their FTA. The negotiations were, however, suspended due to the COVID-19 pandemic.

Some of the Turkish companies that the new tax rate will directly affect include clothing brands LC Waikiki, Koton, and DeFacto, and retail company Bim, according to media reports in Morocco.

Fibre2Fashion News Desk (DS)

Morocco recently decided to impose 36 per cent import tax instead of the earlier 27 per cent on Turkish textile and clothing products. The measure, aimed at supporting the domestic textile industry, came into effect on July 27. The tax was part of the amended 2020 Finance Bill, approved by the Moroccan government and parliament earlier this month.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *