Clothing, shoe sector faces daily losses of JOD one million during total lockdown

Economy

Published: 2020-11-15 11:03

Last Updated: 2020-11-15 11:03


Clothing, shoe sector faces daily losses of JOD one million during total lockdown
Clothing, shoe sector faces daily losses of JOD one million during total lockdown

The representative of the apparel, shoes, fabrics, and jewelry sector in the Jordan Chamber of Commerce, Asaad Al-Qawasmi, confirmed Sunday that the clothing and shoes sector loses about JOD one million dinars every day during total lockdown including fixed operating costs which include rent, salaries, shop licenses and electricity.

In addition, he indicated in a press statement Sunday that the sector also suffers millions of dinars in losses due to the suspension of sales during the days of the total lockdown, stressing that the sector is in a "catastrophic state", due to the decline in commercial activity and a decline in sales.

Al-Qawasmi indicated that the sector's merchants are no longer able to fulfill their financial obligations, salaries, rents, sales, flow of goods or preparing for other seasons which the sector has lost such as the summer season or returning to schools.

He pointed out that the apparel and shoes sector pays approximately JOD 427 million annually including operating expenses worth over JOD 85 million; rent worth JOD 330 million dinars, and salaries and other additional costs worth JOD 12 million.

Al-Qawasmi stressed the need to cancel total lockdowns while replacing them with increased awareness, safety measures, and granting the clothing and footwear sector some incentives, especially reducing sales tax and the percentage of profit from income tax and customs duty charges.