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Textile industry to recover as tax raised on imported clothes

Published on January 11, 2016

The Rwandan government plans to impose a 100 per cent duty on imported clothing in order to protect the domestic textile industry.

Import duty is set to rise this month from the current 35 per cent on clothes imported from outside the EAC to 70 per cent, and to 100 per cent in July.

The increased duty will make imported clothes more expensive and encourage the purchase of fabrics from the only textile mill in the country, L’Usine Textile du Rwanda (Utexrwa).

Utexrwa has been pushing for protectionism in order to save its 30-year-old factory, valued at $75 million; production has fallen steadily against the backdrop of increasing imports. Read more. Source | East African