Uttar Pradesh - Rahul Gandhi opposes VAT on Agra's shoes

Rahul Gandhi, the scion of Gandhi-Nehru family, has opposed proposed value added tax (VAT) on hand-made leather shoes manufactured mainly in Agra.

The young first-time member of parliament from Amethi in Uttar Pradesh (UP) and a member of the Congress Working Committee (CWC) has written to Uttar Pradesh Chief Minister Mayawati that if her government's proposal to the Centre to impose four percent VAT on the moulded shoes and 12.5 percent VAT on hand-made leather shoes was to be accepted and enforced, 'it will adversely affect the livelihood of 300,000 poor people, mostly belonging to the Scheduled Castes.'

Rahul Gandhi stated in his letter: 'Recently the UP government has decided to impose VAT and sent a proposal to this effect to the Centre. Under this scheme, four percent tax has been proposed on plastic moulded shoes and 12.5 percent on hand-made leather shoes.'

'If this proposal is accepted, then it will lead to ruination of the Agra shoe industry,' he said. He welcomed the UP government decision to exempt the Benares hand-woven sarees and the Lucknow chikan works from such tax and sought similar exemption for Agra shoes.

Source : Earthtimes - London, UK, dated 03/12/2007