Colombia’s increased taxation policy on textiles reduces imports by 20%
Last year’s decree by the Colombian government to stimulate the local production of textiles and clothing has resulted in a 20% drop in foreign imports. However, the legislation imposed by the government has an indirect negative effect on the luxury fashion and accessories sector, motivating wealthy Colombian buyers to make their shopping abroad i.e. the U.S. where luxury branded fashion and accessories items are up to 30% cheaper.
The very high price of commercial space rents and import taxation remain the two main factors which have been delaying the entry of many luxury brands into Colombia.