Cess on shoes, slippers increased

Industrial Development Minister Kumara Welgama said by increasing the cess from Rs. 300 to Rs. 400 on shoes and slippers, small and medium footwear industrialists will be protected.

"It is our responsibility to protect the local footwear manufacturer and assist them. Many small and medium scale industrialists have started industries. They are the ones who have come forward to uplift the quality of the local industrial programme while appreciating it. That trust cannot be broken," the Minister said during a discussion at the Ministry with the Small and Medium Scale Footwear Industrialists Association.

"We hope to start a training school together with the FDDI Institute in India for footwear manufacturing. We have already made arrangements in this regard. The local footwear industry has seen a development," he said.

The Minister agreed to the request of the Footwear Association to introduce a loan scheme with a 20 year repayment period for the leather tanning industry.

Welgama emphasised that it is hoped to take steps in the future to decrease the tax percentage paid by factories from the present 13 per cent to five per cent and the releasing of vat and other taxes for imported machinery.

It was also brought to the Minister's notice to increase the cess to Rs. 800 and to import the upper parts used for the manufacturing of casual deck shoes under concessionary taxes for which there is a demand. However, to protect local industrialists and encourage them, it was decided that the Rs. 300 cess charged up to now would be increased to Rs. 400 in 2009 and the import tax would be increased from 30 per cent to 50 per cent.

Footwear Association members said the export of leather products illegally is a barrier for the improvement of the local industry. Additional Secretary R. V.D. Piyathilake said the Ministry has taken steps in this regard.