Govt Hikes Fabric Import Duties to Boost Local Industry

 

 

The government has increased customs duties on selected polyester staple fibres and dyed woven cotton fabrics to 40 percent plus US$2.50 per kilogram under the 2026 National Budget. 

The move is part of efforts to strengthen the cotton-to-clothing value chain and support domestic textile producers.

Announcing the adjustment, Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube said:

“In support of local production, I propose to review and align the customs duty rate on selected polyester staple fibres and dyed woven cotton fabrics at a rate of 40 percent plus US$2.50 per kilogram.”

The tariff revision is aimed at addressing long-standing market distortions caused by cheap imports, misclassification, and weak enforcement, which have suppressed capacity utilisation and undermined domestic fabric production.

Authorities cautioned that the impact of the higher duties will depend on effective enforcement against smuggling and rebate abuse, noting that tariffs alone will not guarantee sustainable local production without strong border and market controls.