Zimbabwe urged to defer proposed customs duty hike on specific fabrics

The Ministry of Industry and Commerce has directed the Competition and Tariff Commission (CTC) and the National Competitiveness Commission (NCC) to conduct a study to better understand capacities across the value chain and problems limiting linkages between its various stages.

The government has proposed to raise by 300 per cent the customs duty on selected imported PSF with dyed woven fabrics of cotton to support domestic production and strengthen the cotton-to-clothing value chain.

The proposal was announced by Finance, Economic Development and Investment Promotion Minister Mthuli Ncube while presenting the budget recently. “I, further propose to review materials benefitting from the clothing manufacturers rebate to exclude the above-mentioned fabrics, subject to quality and competitive pricing from local manufacturers. These measures take effect from January 1, 2026,” he said.

According to the Zimbabwe Clothing Manufacturers Association (ZCMA) chairman Jeremy Youmans, it is too early to implement these measures as the study results are yet to be released.

“The intended duty of 40 per cent should only apply to finished goods, not fabric, which is a raw material for the clothing industry and an intermediate goods for home textile manufacturers,” Youmans was quoted as saying by domestic media reports.

“The additional $2.50 per kg can make the duty rate rise to between 60 and 90 per cent depending on the weight of the fabric,” he added.

Meanwhile, the Zimbabwe Textile Manufacturers Association (ZITMA) hailed the government’s proposal, saying more needs to be done. The issue of second-hand clothing must be decisively dealt with as it continues to play havoc with the market, ZITMA said.

ALCHEMPro News Desk (DS)