India’s leather trade is reported to be ‘up in arms’ at the government’s halving of the duty drawback (export tax refund) at the beginning of this month, from 12.5% to 6%.

The industry had been lobbying the for the duty level to be increased to 25%, so as to partly offset the 50% rise in hide prices that has taken place in parts of the country in recent months. Such an increase would also have helped counter the effects of a weakened Euro – the currency in which an estimated 70% of the country’s leather exports are traded. So the decrease has been especially badly received.

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