The growing e-commerce led to a decline in demand for clothing stores (Getty)
The frequency of warnings increased Outfitters and shoes In Jordan, the deterioration of their activities due to high taxes and operating costs and the decline in the purchasing power of citizens, in addition to the intensification of competition with Electronic tradeIn what is known as postal parcels, which threatens thousands of workers in the sector with layoffs.
The head of the Garment Trade Union, Sultan Allan, said that the sector suffers from successive challenges, the latest of which is the increase in the value of customs duties on imported goods, which leads to an increase in their prices and a limitation of competition within the local market, especially with goods that come through postal parcels, which have become 55% of the goods. % of the volume of clothing trade.
Allan added that the goods that merchants import through the border crossings are subject to customs duties and taxes much more than those that enter through postal parcels and do not incur significant costs such as renting shops, employee salaries, electricity and water services, and others. He added that merchants are currently complaining about the high rates of customs appreciation on clothing, and the concerned authorities will be contacted to clarify the impact of this on the commercial sector and the risks that threaten it and its repercussions during the coming period.
According to the complaints received by the Syndicate from merchants, customs estimates have risen by between 50% and 70%, which are unacceptable and exceed the ability of merchants and citizens to bear and stimulate the trade of postal parcels, whose volume is constantly expanding. On the other hand, the maximum tax burden imposed on postal parcels is 10%, while the tax burden on the clothing sector is approximately 35%, according to Allan.
He stressed that the decline in the purchasing power of citizens and the increase in the number of parcels and electronic commerce led to exhaustion of the sector and it is now in a disastrous situation, indicating that the abolition of the indicative lists in customs contributed to increasing the rates of estimation (estimating the value of customs) and leaving things floating.
The number of clothing, fabric and shoe stores in Jordan is estimated at about 14,000, employing about 70,000 people, most of whom are Jordanians, at a rate of no less than 98%.
Allan emphasized the importance of regulating electronic commerce, equality between postal parcels and trade that passes through customs centers, and the necessity of linking sales seasons with shopping festivals and organizing them during discount periods, including the summer and winter sales periods.
The Jordanian Labor Observatory quoted workers in the garment trade sector as fearful of losing their jobs during the coming period due to the decline in purchasing power, fees and taxes on activity.
The worker, Tharwat Al-Samadi, said that he is concerned that he will lose his job in light of the difficult conditions, pointing to the recent increase in cases of suspension in his work environment. He added that he has been working for seven years in a clothing store in the market of the city of Ajloun in northern Jordan, and the salary he receives is lower than it was in the past, explaining that he used to earn 300 dinars per month, “and now I get 260 dinars (366.6 dollars) because of the decline in sales.” .
Umm Muhammad, owner of a clothing store for about ten years, also said that years ago, a clear difference appeared in the size of people’s demand to buy clothes. They buy what affected my work and my income.
She added that she has obligations, as she pays the water and electricity bills, and the shop rent is 350 dinars per month, in addition to the value of the monthly social security contributions, and in return she does not get sufficient financial return, pointing out that she is forced to buy on credit to keep the shop going.
An official at the Ministry of Industry, Trade and Supply told Al-Araby Al-Jadeed that work is currently underway to prepare a comprehensive strategy to organize e-commerce work, set controls for it and protect consumers as it is an important tool in commercial work and must be dealt with in a way that achieves the public interest.