Saturday, 2 March 2013

Footwear-makers say marginal duty cut will have no impact on prices


Footwear prices are not set to come down despite reduction in duties for machinery for the manufacture of leather goods dropping from 7.5 per cent to 5 per cent.

“The impact of this is going to be marginal will not impact footwear prices. Footwear manufactures are already burdened with a whole lot of taxes like excise and VAT,” said Suman Barman Roy, President, Khadim’s, the Kolkata-based shoe retail company.

Delhi-based Liberty Shoes also has no intentions of reducing prices. “There will be no impact on prices,” states Anupam Bansal, Executive Director, Liberty Shoes.

TAXES ALREADY HIGH

In fact, most shoe retailers are already reeling under high taxes and were expecting the Budget to give some respite, as in the case of the textile industry. “Shoes are as important as apparel and gives employment, as it is a labour intensive segment. We are already heavily taxed. Reducing duties on leather machinery is of no consequence, as most players, including ourselves, are moving towards importing footwear brands,” said Inder Dev S. Musafir, Director, M&B Footwear.

IMPORTS

Other international brands like UK-based Clarks, which are present in India through a joint venture with the Future Group, are not expecting any major changes in prices.

S. Ramprasad, CEO, Clarks said: “While we have a significant production base in India, most of the footwear is imported from countries like China and Vietnam. Even if there is some reduction in import duties, the high exchange rates will not lead to any significant drop in footwear prices.”
http://www.thehindubusinessline.com/companies/footwearmakers-say-marginal-duty-cut-will-have-no-impact-on-prices/article4466154.ece?homepage=true&ref=wl_home

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