Footwear Association calls for delay in duty imposition

Anjana Samarasinghe

DUTY: The Sri Lanka Footwear Association (SLFA) is requesting a delay in implementing the duty imposed on imported footwear components in the budget proposals.

Chairman of the SLFA Chandralal de Silva told Daily News this is the first budget that has granted many concessions to the local footwear industry since 1978.

"There is a cess imposed on outer soles and heels 20% or Rs 100 per unit whichever is higher with effect from last Friday through the recent budget. As the association we request the Government to delay implementing this duty at least for six months," de Silva said.

This sudden duty will create a shortage of outer soles and heels in the local market. This will impact on the local footwear industry.

The local footwear industry can manufacture these components in Sri Lanka without importing them. But the local industry needs time to manufacture these items to the local market.

The recent budget has also granted concessions on importing machinery for the local footwear industry. Under this scheme local manufacturers will able to import the necessary machinery to manufacture these components but we need time to prepare for the manufacturing process.

We request the Government to delay this duty till the industry manufactures these components in Sri Lanka, he said. Imposing a 25% cess for all imported footwear or Rs 300 CESS on each pair whichever is higher is a great support for the local footwear industry.

The shoe industry also is to be exempt from import taxes on raw materials he said.

Meanwhile the SLFA also targets to set up 100 mini footwear factories for small-scale manufacturers next year.

"We have selected 100 small scale industrialists as the initial stage.

"The Lanka Puthra Development Bank will provide funds for industrialists under low interest rates. The Association will provide the necessary technology and designs for these industrialists," he said.

SLFA expects to import the required machinery for these mini factories and they will also find markets for these industrialists.