Footwear manufacturers in jitters over VAT

Staff Reporter

VIJAYAWADA: The President of Indian Footwear Components Manufacturers' Association (IFCOMA), Mani Almal, has said that a crisis situation is prevailing in the manufacturing, wholesale and retail marketing due to the new 12.5 per cent VAT on leather footwear. Expressing fears of the crisis getting accentuated, Mr. Almal, on Saturday, said that the new VAT regime was going to have a very negative impact on footwear industry and the prices were likely to go up by 60 to 70 per cent in the near future.

Addressing a press conference ahead of IFCOMA's exhibition here, Mr. Almal observed that footwear was no longer a luxury item and the tax on these goods should be reduced to 4 per cent, if the consumers were to enjoy the comfort of quality footwear at competitive prices. "Footwear has become one of the most used items. As much importance is being given to footwear as to medicines and textiles," he said. The business of footwear components sector would come to around

Rs. 6,000 crores, which was besides leather upper materials being used in it, he observed.

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