This research aims to review the literature that related to the impact of Value-Added Tax and customs duties on retail supply chains within the clothing industry. However, this paper seeks to understand how these fiscal policies influence supply chain efficiency, cost structures, pricing strategies, and market competitiveness. The research employs a comprehensive literature review and thematic analysis to synthesize existing studies on VAT and customs duties. Data were systematically extracted from academic and industry-specific databases. The literature reveals that VAT and customs duties have multifaceted impacts on the retail supply chains in the clothing industry. VAT's asymmetric incidence often results in inflationary pressures, particularly in price-sensitive markets. Efficient VAT administration enhances compliance and reduces tax evasion, stabilizing the retail market. Customs duties, while protecting local industries, can increase costs and disrupt supply chains if not effectively managed. The study highlights the importance of modernizing customs procedures to streamline operations and reduce compliance costs. Furthermore, the findings underscore the significance of effective policy-making and enforcement in mitigating the adverse effects of these taxes. However, this paper provides valuable insights for policymakers, industry stakeholders, and businesses navigating the complexities of VAT and customs duties in the clothing industry. However, by these fiscal policies, stakeholders can design strategies that promote compliance, operational efficiency, and market stability. The findings also emphasize the need for robust administrative frameworks and strategic policy interventions to foster a resilient and competitive clothing industry. Thus, our future research will be Case Study of Kashtban Trading Company, to explore the effect of customs duties and value-added tax on the clothing industry and retail supply chains in Dubai.