The state footwear manufacturers and merchants have demanded reduction in value added tax (VAT) to remain competitive.
They have threatened to move out of the state if VAT continues at the current high level.
The Calcutta Rabindra Sarani Footwear Merchants Association (CRSFMA) has demanded a park dedicated for footwear industry in line with leather complex at Bantala.
The General Secretary of CRSFMA, T Haque Lari, said that lack of uniformity in VAT rates is hurting footwear sector in West Bengal.
Footwear industry is being relocated at Haryana as it provides better infrastructure with investor friendly tax structure.
The Delhi Government had recently decided to offer some relief to footwear manufacturers.
Haryana has VAT exemption of up to Rs 200.
Delhi announced VAT exemption of up to Rs 300 in footwear in March 2006 units in West Bengal cannot compete with them, he said.
Footwear units like rubber sandals and similar PVC products attract a VAT of four per cent in West Bengal whereas other products including leather footwear it is 12.5 percent, said Lari.
CRSFMA complained that the rate was one of the highest in the country.
State Government should look into this as footwear is one of the oldest industries here, he added.
CRSFMA General Secretary said the combined turnover of footwear industry in state is around Rs 3,000 crore.
Bata has shifted major portion of its operation to Gurgaon.
Arun Mukherjee, Marketing Head, Titas Footwear said the association would propose for footwear park.
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