SANA'A - SABA :
The Tax Authority denied what is circulating on social media about an increase in taxes on the garment sector.
In a statement received by the Yemeni News Agency (Saba), the authority said, "There is no increase in the tax above what is legally prescribed, but what has changed is the final collection of tax at customs ports on ready-made garments imported from abroad only."
It emphasized that this measure was taken at the request of the local sewing sector, the local textile federation and the Commerce and Industry Chamber , and according to a memorandum signed between the Tax Authority leadership and the Chamber of Commerce and Industry in Capital Secretariat.
"On the other hand, the local sewing sector and production inputs for garments were exempted by 100 percent from all types of taxes, namely profit tax , sales tax, and the exemptions included garment production inputs as well as salaries and wages tax on labor income in this sector," the statement added.
The statement reiterated that the decision taken will contribute to reducing the drain of hard currency abroad, as the import bill for ready-made garments amounts to about 100 million dollars annually, and local workers are more deserving of it than workers in other countries, especially the local textile sector has developed in recent years and has become capable of producing various types of clothing with high quality and lower cost.
The statement pointed out that the department will spare no effort to support , assist the local sewing and textile sector, which employs up to 200,000 workers. The Tax Authority called on importers and exporters of imported products to support and assist the local sewing and textile sector, which employs more than 200,000 workers, and threatens the fate of workers in this vital sector.
The Tax Authority called on importers of ready-made garments to produce local clothes and textiles, and privileges will be granted to them by exempting them from all types of taxes, including their production inputs, in accordance with the presidential decree in this regard and the minutes signed with the Chamber of Commerce.
The Tax Authority denied what is circulating on social media about an increase in taxes on the garment sector.
In a statement received by the Yemeni News Agency (Saba), the authority said, "There is no increase in the tax above what is legally prescribed, but what has changed is the final collection of tax at customs ports on ready-made garments imported from abroad only."
It emphasized that this measure was taken at the request of the local sewing sector, the local textile federation and the Commerce and Industry Chamber , and according to a memorandum signed between the Tax Authority leadership and the Chamber of Commerce and Industry in Capital Secretariat.
"On the other hand, the local sewing sector and production inputs for garments were exempted by 100 percent from all types of taxes, namely profit tax , sales tax, and the exemptions included garment production inputs as well as salaries and wages tax on labor income in this sector," the statement added.
The statement reiterated that the decision taken will contribute to reducing the drain of hard currency abroad, as the import bill for ready-made garments amounts to about 100 million dollars annually, and local workers are more deserving of it than workers in other countries, especially the local textile sector has developed in recent years and has become capable of producing various types of clothing with high quality and lower cost.
The statement pointed out that the department will spare no effort to support , assist the local sewing and textile sector, which employs up to 200,000 workers. The Tax Authority called on importers and exporters of imported products to support and assist the local sewing and textile sector, which employs more than 200,000 workers, and threatens the fate of workers in this vital sector.
The Tax Authority called on importers of ready-made garments to produce local clothes and textiles, and privileges will be granted to them by exempting them from all types of taxes, including their production inputs, in accordance with the presidential decree in this regard and the minutes signed with the Chamber of Commerce.