Indian leather industry protests at sales tax hike
The Indian leather industry was last week said to be `shocked and disappointed’ at the hike in sales tax on dressed hides and skins from two to four percent.
Speaking to the national press, the President of the All India Skin and Hide Tanners and Merchants Association President M Rafeeque Ahme said his members were in the midst of a crisis. Not only were they facing fierce competition from other Asian producers such as Korea and China, they had also been hit by the burgeoning boycott of Indian leather, instigated by animal rights organisations.
"The conversion of raw hides and skins to dressed hides and skins is mostly done by small tanners who buy the raw materials after paying four per cent sales tax to the respective states. Adding to the tax burden on an industry dominated by small sector and one that has invested heavily in environment protection is unbearable and non-productive," Mr Ahmed said in a press release.
A separate proposal to impose a one per cent additional sales tax on smaller businesses would further harm the competitiveness of leather producers. Mr Ahmed warned.
Also last week, Nike and Reebok,, the world’s top two athletic footwear brands, both announced their decision to join the boycott of Indian leather, joining the ranks of retailers such as GAP, Marks & Spencer, Eddie Bauer, Timberland, Casual Corner and Liz Claibourne.
