Uttar Pradesh - Mayawati snubs Rahul Gandhi over VAT on footwear

In a clear snub to Congress General Secretary and Amethi MP Rahul Gandhi, Uttar Pradesh Chief Minister Mayawati on Tuesday said the Value Added Tax(VAT) on footwear in the state had been determined on the basis of the recommendations of a central committee.

"There is no VAT in the state as yet, therefore the issue raised by opposition on the issue is politically motivated," she told reporters here without naming of Gandhi whose letter addressed to her was relased to media yesterday.

However, officials of the CM’s secretariat said the Chief Minister had not received any letter from the Congress MP.

The rates of VAT have been centrally recommended and imposed in all the states alike but to point out the plight of state's shoe industry was only to derive political mileage out of it, Mayawati said.

Blaming the centre for being non-serious about the footwear industry in the state, the UP CM said had the centre agreed upon reducing the central excise duty on footwears, the benefit would have passed on to the footwear manufacturers.

Presently, there was trade tax on footwaer rubber and plastic at the rate of 4 % and 8% respectively which was already lowest in the country, she claimed.

Mayawati demanded reduction in the central excise duty to give relief to footwear manufacturers in the state.

Source : Zee News - Noida, Uttar Pradesh, India, dated 04/12/2007