Malawi fabrics importers cry over higher duty
16/6/2005 16:54
Malawi's merchants of imported fabrics have complained about government
plans to increase excise duty on their materials from 22 percent to 50 percent
to protect the local industry, Malawi newspaper The Nation reported on its
website Thursday.
Finance Minister Goodall Gondwe announced the duty increase
last Friday in his budget presentation to the parliament in
Lilongwe.
Lambat's Variety Center Manager Yunus Lambat said the increase in
duty is too high and will have a very big impact on buyers.
"The increase is
very unrealistic and this will mean that we will have to hike our prices so that
they are in line with the increase in duty, otherwise we will be out of
business."
"Government should have considered us because we are just
complementing the local industry and not competing with it as others may think,"
said Lambat.
Another merchant who opted for anonymity said the textile
industry will suffer a lot as the tax increase will mean that the imported
fabrics, which are also rated highly by local masses, will no longer be
affordable.
"I feel very sorry for the rural masses as they will have to dig
deeper into their pockets for them to buy the quality fabrics they like," he
added.
Xinhua
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