Clothing sector faces around JD54m in losses

AMMAN — A representative of the clothing sector has demanded that the government reduce the sales tax in the sector from 16 to 8 per cent, especially as the sector is among those hard-hit by the coronavirus crisis.

“The clothing and footwear sector has been categorised as one of those most severely impacted during the pandemic, and it requires true support,” Asaad Qawasmi, a representative of the clothing, garment and jewellery sector at the Jordan Chamber of Commerce, told The Jordan Times on Monday.

Qawasmi demanded the issuance of a defence order to resolve financial disputes between landlords and renters instead of leaving them for the judiciary, noting that otherwise, many problems will arise in the coming period. A defence order, he stressed, would preserve the relationship between tenants and landlords.

He added that the sector is looking forward to reducing customs fees as a form of support as well.

Earlier, Qawasmi estimated the sector’s losses at around JD54 million, distributed between rent and salaries, noting that the sector owes JD33 million in rent each month while monthly salaries total around JD22 million.

“The sector is very damaged, and it was late when shops were allowed to open during Ramadan, which reflected negatively on a sector that has already been suffering even before the coronavirus crisis began,” he said.

Based on the latest report by the Department of Statistics, the average annual spending by Jordanian families on foodstuffs and other commodities and services stands at around JD12,500, 32.6 per cent on food and 67.4 per cent on other items.

At the beginning of June, clothing and footwear merchants urged the government to adopt swift measures to boost the sector.

At the time, Jordan’s Textile and Readymade Clothes Syndicate President Muneer Deyeh said that the COVID-19 crisis has left the sector with “many challenges that need to be addressed urgently”.

“We are hopeful that the government will adopt measures that will ease the financial burden on our industry so that many entities will not be forced to shut down or let go of many employees,” Deyeh had told The Jordan Times in a phone interview.