According to the Jordan Times, Muneer Deyeh, chairman of the Textile and Garment Federation, said on Thursday that many clothing and footwear stores in Jordan declared bankruptcy in September and October. The Textile and Garment Alliance calls on the government to reduce sales tax from 16% to 8% immediately to save Jordan’s struggling garment industry.
Chairman Deyeh believes that reducing sales tax will help revitalize the market, improve people’s purchasing power, promote cash flow, and reduce sales tax to benefit the country and the people. Lowering the sales tax does not mean that government revenue will decrease; rather, it means that cash flow in the market will increase, thereby improving the economy and increasing gross domestic product. The current sales tax rate has made it difficult for a large part of society to purchase even basic necessities, worsening the market business environment. Therefore, we need to take measures as soon as possible to restore Jordan’s most important garment industry as soon as possible before more businessmen and companies in different industries go bankrupt.
