Minister of Industry and foreign trade Tarek Kabil (Photo: Courtesy of Ministry of Industry and Foreign Trade official Facebook page)
Egypt has raised duties on exports of scrap fabrics used in the manufacturing of furniture fabrics by 40 percent, in an attempt to boost local industry.
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, Kabil said in the statement.
Levy on scrap fabrics will become LE3500 ($447) per ton starting January 2016, up from LE2500 ($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 Kabil, 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 LE9780 ($1250) after export tax. However, it is sold locally at LE3700 ($473).