High taxes and cess levied on components, raw materials and leather for the footwear industry have hit the domestic industry badly, a leading foot wear manufacturer said.
Speaking at the inauguration of the leather components industry buyer –seller meet cum xhibition at Galle Face hotel in Colombo recently, and seeking a cut in taxes and cess on all footwear components and raw material, Managing Director of the Bata Shoe Company of Ceylon Ltd, Ceaser A. Pandaro said that they have no alternative other than passing this cost to customers.
He added that the government should take measures to utilize the revenue from Rs 200 cess per kg on imported footwear components, for the benefit of the domestic industry and providing some incentives for industrialists.
“The escalating cost of raw materials both locally and internationally is always a challenge. Imports too create problems. We do not mind legal imports and fair competition. However illegal imports are a problem to the government as well since it kills the cottage shoe industry and deprives revenue by way of tax. Serious thought has to be given to this”, another shoe manufacturer who wished to be anonymous told the Business Times.
Leather Footwear Advisory Council Chairman Ranjith Hettiarachchi said that Indian footwear and leather component industrialists should set up joint ventures with Sri Lankans to make the country a top exporter of leather products in the region.
Endorsing the suggestion, Indian High Commissioner in Sri Lanka Ashok K Kantha said that India and Sri Lanka being close neighbours enjoy an inseparable link. In the context of the current business scenario of globalization, this intimacy proves to be a noteworthy connection with regard to economic and trade ties, he added. |
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