Shoe makers: Cut excise duty on raw materials

- Post Report, Kathmandu

Dec 25, 2015-

Domestic footwear manufacturers have urged the government to lower excise duty on the import of raw materials and raise the rate on imported shoes.The country is moving in the right direction to being self-sufficient in footwear, but cheaper Chinese products are hurting sales of domestic manufacturers, they said.

Locally-made shoes command 55 percent share in the domestic market that is estimated to be worth Rs10 billion, according to Footwear Manufacturers Association of Nepal (FMAN). The market demands 50 million pairs annually.FMAN President Rabin Shrestha said the difference in the tax imposed on the import of raw materials and finished goods should be widened to at least 15 percent promote the domestic industry. “Nepali shoes have witnessed a healthy growth in the last few years, but it has not been able to substitute imports as imported products are cheaper,” he said at the opening ceremony of 12th Nepali Boot and Suit Expo in Bhrikutimandap, Kathmandu, on Thursday.The excise duty on the import of raw materials stands at 5-20 percent, while that on finished shoes is at 20-25 percent. Inaugurating the expo,Industry Minister Som Prasad Pandey said his ministry would work to address the concerns of the industry. 

“We are making plans to promote the domestic industry. Domestic shoe manufacturers should introduce the latest designs so that the elite class would also buy,” he said, adding the government would take measures to ban the export of unprocessed leather. 

Suraj Bajracharya, president of Tailors Association of Nepal, said load-shedding and fuel crisis have affected their business. 

“We are taking orders for suits and saris for the wedding season which will start from the next month. But if the current situation continues, we won’t be able to deliver on time.” Organised jointly by FMAN and Tailors Association of Nepal, the weeklong expo features 105 stalls of footwear manufacturers and 80 stalls of clothing and suiting shirting.

 

Published: 25-12-2015 10:38

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