Egypt is to raise duties on exports of scrap fabrics used in the manufacturing of furniture fabrics by 40 percent, trade and industry minister Tarek Qabil announced Sunday.
The decision aims to boost the domestic textiles industry as the rise in the clothes fragments showed that exporters were not deterred by the current levy, Qabil said in the statement.
Levy on scrap fabrics will become 3,500 Egyptian pounds (US$447) per ton starting January 2016, up from 2,500 pounds (US$319.5) per ton imposed currently, according to a ministerial statement released Sunday.
“Exports of scrap fabrics have more than tripled to 294 tons in 2015 from 93 tons in 2014,” the statement added.
According to Qabil, the difference between exporting price and local selling prices is huge, which drives traders to export. A ton of scrap fabrics was exported in 2015 for around 9780 pounds ($1250) after export tax. However, it is sold locally at 3700 pounds ($473).
