Agra shoemakers on warpath against new tax

By IANS

Agra : The famous shoemakers of Agra, mostly Dalits, are on the warpath against the decision of the Mayawati government in Uttar Pradesh to bring the leather goods sector under the value-added tax (VAT) regime.


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On the second day of a total strike, thousands of shutters were down as over a dozen unions and traders’ associations, manufacturers and workers joined the strike.

If the provisions are enforced, shoemakers will have to shell out an additional 12.5 percent on sales.

“This would push them out of the competitive market and sound the death knell of the traditional shoe industry of Agra,” said social activist Netra Pal Singh who runs Hast Nirmit Shoemakers Association.

Shoe market sources said the losses on the first day of the strike were in the region of Rs.10 million.

Under the VAT regime, machine-made shoes will pay only four percent while handmade shoes will be levied 12.5 percent, said shoe manufacturer Anil Kumar.

Transporters have also joined the strike, expressing solidarity with the shoemakers.

Raj Kumar Sama, who heads the Shoe Manufacturers Association, said the fact that the strike has been total and unprecedented reflects the serious concern of the industry, which wants the same rates of tax as in Delhi and Haryana.

At a meeting of the strikers Wednesday afternoon, speakers condemned the lack of positive response from the government.

They said the industry was doomed and thousands of shoe workers would be out of work.

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