West Bengal footwear industry seeks VAT reduction - footwearbiz: Leadi

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West Bengal footwear industry seeks VAT reduction

16/11/2006

The footwear industry in West Bengal, India, is seeking a reduction in the rate of Value Added Tax (VAT) rate from 12.5% to 4.5% for footwear with a Manufacturing Retail Price (MRP) between Rs300 ($6.62) and Rs750 per pair, with the MRP marked indelibly on the product. Representatives are also seeking full VAT exemption on footwear priced below Rs300 per pair, with the MRP indelibly marked on the product.

The industry claims that there are already large tax exemptions for similar items in other states such as Delhi and Madhya Pradesh, and feels that this should be extended to West Bengal in order to maintain a fair marketplace. Industry associations in the state fear that some 300,000 skilled and unskilled labourers engaged in this small sector may be wiped out if remedial measures are not taken.



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