Türkiye: Increasing taxes on fabric imports pose a challenge to clothing industry

Turkish clothing manufacturers, which are the third largest clothing suppliers to Europe, face major challenges due to high production costs.

The Turkish government decided to raise customs duties on imports of textiles and fabrics by 30% to 100% in an effort to support local textile manufacturers.

This step comes within the framework of efforts to support local industries and stand against the wave of imported clothing at low costs.

These new taxes have raised great concern among clothing manufacturers, as they consider them to constitute an additional burden on a sector that is already facing major economic challenges.

For their part, industry representatives assert that this increase in costs may lead to companies losing their competitiveness against their Asian competitors, putting the jobs of many workers in this sector at risk.

Garment manufacturers face increasing challenges as import costs rise, and they fear losing market share to competing countries such as Bangladesh and Vietnam.

In addition, the sector is experiencing additional challenges as a result of declining demand and lower profit margins, along with fluctuations in the Turkish currency exchange rate.

Although there is potential for tax breaks, the current system is considered impractical and expensive, making it unsuitable for many businesses.

Sector representatives stress the need to search for immediate solutions to maintain the sustainability of this important industry in Türkiye and avoid negative impacts on the local economy.