Leather manufacturers are against the imposition of 10 per cent customs duty on import of finished leather products as it will not only lead to price hike but also threaten the competitiveness of footwear and leather products exporters. Nirmala Sitharaman, Finance Minister has proposed to impose a basic customs duty of 10 per cent on wet blue chrome tanned leather, crust leather, finished leather of all kinds, including splits and sides from nil duty.

Harkirat Singh, Managing Director, Aero Club opines this could lead to an increase in costs. Ashish Jain, Director and CEO, Latric Industries says, the Budget does not offer any major benefits to footwear manufacturers. He believes increased leather prices would make things difficult for leather footwear exports and domestic prices.

Ishaan Sachdeva, Director, Alberto Torresi says, withdrawal of tax exemption will force leather exporters to derive incentives of their products and substitute normal leather with special leather which can be quite expensive.