Footwear industry welcomes excise duty cut
The footwear industry lapped up the Budget proposal, saying it would not only bring down prices but also help push growth.india Updated: Feb 28, 2006 18:25 IST
The footwear industry lapped up the Budget proposal to reduce excise duty on shoes priced between Rs 250-750, saying it would not only bring down prices but also help push growth.
"Its a step in the right direction which will encourage fresh investment in the industry," Liberty Shoes' Executive Director Adarsh Gupta said.
Finance Minister P Chidambaram today proposed reduction of excise duty on footwear with a retail sale price between Rs 250 and Rs 750 from 16 per cent to eight per cent. He also proposed excise duty exemption on two vegetable tanning extracts -- quebracho and chestnut, used in leather and footwear industry.
Gupta said the move will not only benefit the companies but also the consumers as products could become cheaper.
He said that the proposals to cut excise on textile, man-made fibres and plastic could also lead to reduction in prices.
Khadim's, another big player in the footwear industry which has a dominant share in the eastern markets, also welcomed the Finance Minister's move.
"It is a good step and is encouraging for the industry," Khadim's Managing Director Siddhartha Roy Burman said.
He said prices of the products will come down because of the government proposal.
"Not only would the prices be reduced, but the range will also increase," he said.