Custom tax for EU clothes removed on January 1st
09/07/2011 15:10
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Clothe prices are expected to decrease in the domestic market, since the government decided to remove the customs tax for these products.
This financial measure that will be approved with the new fiscal package and will enter in effect on January 1st 2012, changes the custom tax for EU clothes from 10% to 0.
This means that the prices of the clothes in the domestic market will decrease by 12%, including the effect of the value added tax. Due to the specific nature of the clothing industry, most of these products pay the custom fee twice.
EU companies usually produce their clothe lines in foreign countries out of EU, profiting from the cheap labor force. This makes them pay custom fees twice, once when they enter EU, and then when they are imported in Albania.
Ministry of Finances representatives say that this has brought high prices for clothes in the inner market, making many retail stores to close. Official data say that retail stores pay almost 7 million EUR customs fees per year, including VAT. The government will remove custom fees even for raw materials of inward processing industry, another facilitation for inciting this industry in our country. The relation says that the negative effect of these two new measures will be 1.2 billion ALL.
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