The burgeoning ‘cottage industry’ in unbranded footwear in is likely to be hit hard if the government goes ahead with its new sales tax on cheap footwear, the country’s Footwear Manufacturers and Dealers Association has warned.

Speaking to the national press last week, chairman of the association, Dr Babasaheb Ambedkar said the imposition of such a tax would disproportionately impact on sales of footwear at the cheaper end of the market, costing below Rs100, thereby reducing levels of demand. The association argued that the low cost footwear sector already made a fair contribution to government funds, through taxes that already exist in relation to footwear raw materials.

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