Togo now has a law to foster the growth of its textile industry

(Togo First) – Togolese deputies recently greenlit a law that benefits investors and businesses active in the textile industry. The parliamentarians voted on the bill, which covers the free industrial zone, on November 30, during the sixth plenary session of the second ordinary session of the year 2022.

On the tax front, the law sets the dividend and patent tax on companies at 10%, starting from the 9th year of activity and forward. 

Moreover, investors and businesses operating in the free industrial zone will be exempt from paying some taxes such as the land tax, the income tax due to foreign technical assistance services, and duties and taxes that are not specifically mentioned. There is also a 50% cut on customs duties and taxes and the VAT on commercial vehicles.

The passing of the law by the deputies will, according to the minister for investment promotion, Kayi Mivedor, guarantee the “development of a fully integrated value chain from the production of cotton, the basic raw material, to the manufacture of clothing.”

For the government, the goal, with the new law, is to use the textile industry to create more jobs in Togo, in line with “the vision developed by the government roadmap to strengthen the attractiveness of the country to investors itolocally process cotton produced in Togo,” via the Industrial Platform of Adétikopé (PIA). 

This article is republished from Togo First under a Creative Commons license. Read the original article.

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