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Relief for Lesotho's rag trade.

The Lesotho government has abolished its tax on some clothing exports as it seeks to widen the apparel range it sells overseas. "This tax cut means that any manufacturer supplying the US or Europe from within Lesotho will be free of tax," reports Andy Salm of Conmark Trust, a regional development agency in Lesotho.

The finance ministry has also sliced 10% off its rate of general company tax as a means of further boosting clothing exports. The rate, down from 35% to 25%, is designed "to put an end to firms' advantage of the lower rate in South Africa to further improve Lesotho's competitiveness". The new rates will come into effect this month. Lesotho is sub-Saharan Africa's largest exporter of clothing to the US.
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Title Annotation:taxes were cut on clothing exports
Publication:African Business
Article Type:Brief article
Geographic Code:6LESO
Date:Apr 1, 2006
Words:124
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