Uttar Pradesh - Shoe manufacturers from Agra meet Rahul Gandhi over VAT

A delegation of shoe manufacturers from Agra on Saturday met AICC General Secretary Rahul Gandhi, asking him to take up with Uttar Pradesh Chief Minister Mayawati their demand for withdrawing the decision to impose VAT on the traditional leatherworks of the state.

"Imposition of VAT on our products is bound to destroy the industry. It should be opposed," said Rajkumar Sama, President of the Agra Shoe Factories Federation after meeting Rahul here.

Rahul has already written to Mayawati asking her to withdraw the decision to impose VAT on handmade shoes.

He had said the decision taken by the UP government to impose VAT on footwear manufactured by the traditional shoe industry of the state would lead it to disaster, especially affecting the manufacturers of Agra.

"Rahul has already written to Mayawati. He promised us that he will talk to her on the issue and has also assured us that he will soon visit Agra to express solidarity with us," Sama said.

Rahul, who is an MP from Amethi constituency in UP and was recently appointed AICC General Secretary, is also a member of the 22-member coordination committee of the Congress in the state.

The UP government has decided to impose 12 per cent VAT on handmade shoes and four per cent VAT on shoes made of moulded plastic.

The federation is opposing imposition of 12 per cent VAT on handmade shoes, saying the tax rate in neighbouring states was just four per cent on similar products, putting them at severe disadvantage.

Source : Udayavani - Bangalore, India, dated 16/12/2007