Import duty exemptions on leather products to boost exports, says CLE

04 February 2022, Mumbai:

The import duty exemption announced in Union Budget 2022-23 on products such as embellishments and wet blue chrome tanned leather by bonafide exporters will boost outbound shipments from the sector, says Sanjay Leekha, Chairman, Council for Leather Exports (CLE).

The initiative will also reduce import costs of critical inputs /embellishments, which are imported as per requirements of overseas buyers besides promoting export of value-added products from the country, Leekha adds.

He also appreciates the extension of date for commencement of manufacturing operations for newly incorporated domestic manufacturing companies from March 31, 2023, to March 31, 2024, for availing concessional corporate tax of 15 per cent will promote investments in the sector.

This will enable MSMEs to get additional credit at concessional interest rates, he notes.

Lastly, Leekha says, the Budget will help leather and footwear industry expand export turnover from $5.09 billion in 2019-20 to $10 billion by 2025-26 and the domestic industry turnover from $12 billion in 2019-20 to $20 billion by 2025-26.

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