High VAT puts Bengal shoe manufacturers on backfoot
15 Jun '06
1 min read
In West-Bengal value added tax (VAT) on footwear is much higher than the other states, Calcutta Footwear Merchants Association (CFMA) has requested state Government to bring down VAT.
Regarding this issue, association has submitted a memorandum to state Finance Minister Asim Dasgupta Asim Dasgupta and Chief Commissioners of Commercial Taxes, C M Bachhawat.
States like Delhi has reduced VAT on footwear in February budget, informed Suman Barman Roy President of Khadim India leading shoe companies in the state.
Because of high taxes state's shoe manufacturers are losing consumers to the Delhi and Haryana, where no VAT on footwear below Rs300 and only 4 percent VAT on shoes which prices range between Rs300 to Rs750.
Whereas in West-Bengal VAT on all footwear is as high as 12.5 percent.
Roy also stated that state's shoe manufacturers seek that VAT should be lower down to the level of Delhi and Haryana so that they can survive in their own market.
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