Duty cut to heal Kanpur leather industry

KANPUR: There is an air of excitement in Kanpur, the largest producer of leather and leather goods in the world, following the FM's decision to slash the excise duty on footwear with leather uppers worth Rs 1000 and more from 12% to 6%. It was a long-pending demand from the Kanpur leather industry to push the sluggish sales.

Kanpur leather and tannery industry brings foreign exchange worth Rs 6,000 crore to the country and gives direct livelihood to more than one lakh people. The city accounts for 40% of leather exports and had upstaged Chennai to take the number one position for exporting leather a few years ago. With an annual turnover is Rs 500-600 crore, there are nearly 600 big and small players manufacturing footwear for domestic as well foreign market.

Chairman, Council for Leather Exports, M Rafeeq Ahmed, said, "The announcement will certainly benefit micro and small industries. Leather shoes priced between Rs 500-1,000 will get 2%-3% cheaper with reduction in excise duty from 12% to 6%. The reduction would be highly beneficial to the manufacturers, particularly the MSME manufacturers selling footwear in the domestic market. It will also encourage the manufacturers to enhance the quality of their products, besides also help in attracting new entrepreneurs to join the leather industry."

Former chairman of the Council for Leather Exports R K Jalan said: "It was a long-pending demand of the leather industry. The excise duty cut on leather shoes will have a positive impact on the leather industry and boost its growth as we would now be able to pump extra money in the industry."

Small Tanners Association (STA) too has welcomed the excise duty reduction.

Popular Posts