| NO.CLE/POL/BUDGET/2008
March 4, 2008
Members of the Council.
Sub : Union Budget 2008-09
Dear Members,
As members are aware, Hon'ble Union Minister for Finance Shri P
Chidambaram
announced the Union Budget 2008-09 on Feb 29, 2008.
The major general concession announced by the Government in the
Budget include
reduction in CENVAT (Central Excise) rate from 16% to 14%. On account
of this, the
total import duty payable has come down from a maximum level of
34.13% to 31.70%, a
net reduction of 2.43%.
However, no specific relief package has been announced in this
Budget for the
leather industry, which has been adversely affected on account of
Rupee
Appreciation. The Council had earlier sought various relief measures
from the
Government in its pre-budget proposals. Some of these proposals
were
1. To Exempt footwear, footwear components, machinery and equipments
from
Central Excise duty.
2. Reduction in Central Excise duty on inputs required in the manufacture
of
footwear components;
3. Enhancement of duty free facility for import of critical inputs
for leather
products and leather garments exporters from 3 to 5%, implementation
of a 3% duty
free import scheme for finished leather exporters &
4. Certain duty concessions for the safety footwear sector
As the above proposals of the Council have not been considered
in the Budget, the
Council intends to submit suitable post-budget memorandum to the
Government for
consideration and implementation of the Council's suggestions.
A Note on the highlights of Union Budget 2008-09 and a Statement
showing the
Pre-Budget & Post Budget Import Duty Structure, on raw materials,
capital goods and
components & accessories used in leather & leather products
industry including
Non-Leather Footwear are forwarded herewith for your information
and reference.
Members may kindly note the above.
With regards
Dr. K. Elangovan
Executive Director
COUNCIL FOR LEATHER EXPORTS
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