Indian leather industry pleased with Union Budget
19/03/2012
M. Rafeeque Ahmed, chairman of the Council for Leather Exports (CLE) said that the announcement to provide assistance in setting up of dormitories for women workers in the five mega clusters relating to the handloom, power loom and leather sectors, would be of great help in creating a secure boarding facility near the workplace for women, particularly for those women whose residence is located beyond 50 kilometres from the workplace. Thus, the scheme will attract more women to the leather industry, he noted.
According to the CLE, the measure of enhancing the limit of the Central Excise exemption for footwear on the basis of retail sale price from $5 to $10 per pair, will be highly beneficial to manufacturers, particularly the MSME (Micro, Small and Medium Enterprises) manufacturers who are selling footwear in the domestic market.
Another major announcement made was extension of the Service Tax exemption, with retrospective effect from 16 June, 2005, to the Common Effluent Treatment Plants (CETPs) set up with the assistance of Central or State Government aid in the leather industry. This is a huge benefit which will help in effectively implementing an environment management programme in the leather industry.
On a negative note, the Central Excise and Service Tax rates have been enhanced from 10% to 12%. The Indian leather industry hopes that the duty incidence will be compensated in the upcoming revision of All Industry Rates of Duty Drawback.
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