The National Federation of Merchants (Fenalco) sent an alert after the National Government’s idea of creating a 40% tax on imports became known.
The initiative, as announced, would aim to encourage and stimulate the national industry.
(See: Tax: the Senate approved the reform project in plenary session).
“The impact on the final price to consumers, also taking into account that there is an increase in imports due to the devaluation of the peso against the dollar, will be, on average, 30% more, which would finally increase the profitability of the smuggling”, considered the president of Fenalco, Jaime Alberto Cabal.
In his opinion, this measure in the midst of a scenario of high inflation Y a dollar that is over $5,000 It will impact Colombians, it will stimulate unemployment and informality.
Likewise, he reiterated that ‘reward smuggling’.
“Under this scenario, the discouragement to the purchase of clothing, which is the fourth item in the family shopping basket, will result in fewer areas in commercial establishments dedicated to this segment and therefore less incentives for the expansion and generation of new jobs. I work in this sectorCabal added.
(See: Prison for tax evaders: this is what the tax reform proposes).
“It should be noted that in Colombia there is no production capacity to replace imported clothing, because its investment levels in the last 10 years have been very low.”, closed the president of the trade union.
The draft of a presidential decree published for consultation indicates that, at a meeting of the Committee on Customs, Tariff and Foreign Trade Affairs, held on October 26, it was recommended “take tariff measures“Regarding the importation of clothing.
With this measure, one seeks “promote a balance in international trade, a greater generation of added value, competitiveness, employment, especially for women, and in the productivity of the national clothing industry“.
Therefore, the decree orders to modify another of December 2021, “in the sense of establishing a tariff of 40% ad valorem (according to value) to imports of any origin of most favored nation (MFN) for products classified in chapters 61 and 62 of the National Customs Tariff” corresponding to textiles and their manufactures.
(See: Tax reform: doubts and successes that the deans see).
“This tariff on clothing imports will allow the Colombian clothing industry to skyrocket“, said the Colombian president, Gustavo Petro, in a message on Twitter.
Confections.
Trade specialists questioned the effectiveness of the measure.
“A sector that, with a dollar at 5,000 pesos, requires a 40% tariff is in serious difficulties and not precisely because of imports“, he explained, also on Twitter, the president of the National Association of Foreign Trade (Analdex), Javier Díaz Molina.
for the economist George Restrepo, associate professor at the Javeriana University, the decree published for consultation is “inconvenient and untimely” because “severely affects the consumer and will increase inflation“
(See: The nonconformity of the unions for the tax reform persists).
And the executive president of the Colombo-American Chamber of Commerce (Amcham), María Claudia Lacouture, considered that the “tariffs that raise clothing prices“add”more shadows on the horizon“economic of the country.
The Colombian Chamber of Clothing and Related yes he thanked Petro “for betting on industry and national employment” and added: “When we import a garment, ultimately what we are importing are minutes of labor that are lost in our country“.
PORTFOLIO AND EFE
