Tuesday, Nov 29, 2022

Shoe sector plans strike across state tomorrow

‘State govt’s VAT hike on footwear has pushed industry into crisis’

Shoe manufacturers,wholesalers and retailers will observe a complete strike on September 14 across Punjab in support of their demands. Addressing a press conference on

Tuesday,Shoe Merchants Association of Punjab Spokesperson Harpreet Singh said that the state government had recently increased VAT on footwear, as a result of which the footwear industry was in crisis.

He said that earlier there was a 5.5 per cent VAT on items except leather-made ones and 12.5 per cent on leather made items.

Further,he revealed that now the state government had introduced 5.5 per cent VAT and 10 per cent surcharge (total 6.05 per cent) on all footwear on the sale price upto Rs 250.

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He added that 13 per cent VAT and 10 per cent surcharge (total 14.30 per cent) on all footwear on the sale price above Rs 250 had been introduced.

“Does the state government now want to steal chappals from the common man?”,he remarked.

Comparing the Punjab government with that of the neighbouring states,he said that footwear up to a sale price of Rs 500 were exempted from tax in the states of Rajasthan,Haryana,Delhi and Uttar Pradesh.

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He pointed out that the footwear industry could not flourish with the policies of the state government in Punjab.

Singh informed that a 21-member committee has been constituted to run a peaceful agitation in Punjab.

He said that the footwear industry across Punjab would observe a complete strike on September 14.

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He added that they would stage protest demonstrations at all the district headquarters on that day.

They would be constrained to chalk out a further strategy for continuing the agitation if the state government did not accede to their demands.

He said they demanded that the new system of taxes should be rolled back and there should be no tax on sale prices of up to Rs 500.

Replying to a question,he said that there were about 1 lakh footwear manufacturing units in Punjab. Of them,20,000 were located in Ludhiana city alone.

He said a fresh notification of taxes was issued in first week of this month. He believed that the footwear industry of Punjab would become uncompetitive in case their demands were not met by the state government.

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The 21-members action committee comprising of presidents and vice presidents of different cities of Punjab was constituted as under: Harpreet Singh and Rajinder Sachdeva from Ludhiana,Davinder Singh from Jalandhar,Rajesh Sachdeva,Raman and Khem Singh Sadana from Amritsar,Ashok Gulbadar from Fazilka,Subash Madan from Muktsar,Sunil Challana from Malout,Gian Chand Garg from Dhuri,Ruldu Ram from Barnala,Davinder Khultham from Phagwara,Joginder Pal Gupta from Khanna,Parveen from Kotkapura,Ashok Ji from Mansa,Chandan Juneja from Abohar,Ishu Kumar from Jalalabad,Naresh Kumar Hans from Rajpura,Joginder Pal Gupta from Khanna,J S Bindra from Hoshiarpur,Raj Gera from Sunam,Kewal Krishan from Bathinda,and Prince Narula from Faridkot.

First published on: 13-09-2012 at 03:37:37 am
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