Finance Minister agrees to correct budget flaw
View(s):Footwear makers are unhappy over a budget proposal to allow duty free shoe imports from the Rs.100 per pair tax earlier.
But Finance Minister Ravi Karunanayake at a meeting with the industry on Thursday promised to resolve their issues.
The industry says duty free imports will flood the market and sharply reduce the local share of the market from a current 60 per cent.
Since 2012 the footwear and leather products sector has been facing a critical situation and finding it practically impossible to continue operations following the then government’s action to reduce the import duty to Rs.100 per pair from 30 per cent on CIF value or Rs.100 per pair whichever is higher, President of the Sri Lanka Footwear and Leather Products Manufacturing Association, P.G .D. Nimalasiri told the Business Times.
he association has made representations to the Finance Ministry to reintroduce the duty structure that prevailed for footwear imports before 2012.
He said sales of locally made shoes have dropped due to imports, adding that the manufacturers have submitted a memorandum to the Finance Ministry urging the authorities to re-introduce the previous duty structure. When this matter was brought to the notice of Mr. Karunanayake at a meeting on Thursday, he has agreed to enhance the Cess to match the previous total custom levies by Monday, Mr. Nimalasiri said.
This will be a relief for the industry as it will bring back the same customs levies on shoe imports, he added.