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Higher VAT may hit Bengal leather sector
March, 14th 2013

Leather goods manufacturers expect a rise in their cost of production with the West Bengal Budget proposal to increase VAT by one per cent.

According to Tapan Nandi, Regional Chairman, Council for Leather Exports (CLE), the Bengal Government’s proposal to introduce a higher VAT will have an impact on the working capital of the leather goods manufacturers in the State.

“There are some issues over getting VAT refund in time as well,” Nandi said here on Wednesday after a press conference to announce the International Leather Goods Fair.

To be conducted by India Trade Promotion Organisation (ITPO) in collaboration with CLE and Indian Leather Products Association, the fair would be held in Kolkata from March 15 to 17.

Nandi added that lack of proper quality testing labs for leather goods in India has been plaguing the industry.

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