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UP abolishes Mandi Parishad tax on raw leather
May '11
The Uttar Pradesh (UP) leather industry is in a state of euphoria.

The UP government has abolished the Mandi Parishad tax on raw leather, upon receiving representations from the leather industry in the state.

“This is expected to increase the competitiveness of the leather sector in the state and provide a level playing field against manufacturers from Punjab, Tamil Nadu and other places”, Mr Rafeeque Ahmed, Chairman - Council for Leather Exports, told Fibre2fashion.

The UP government, in order to provide a boost to the leather sector, had suspended the tax for a period of five years.

However after the expiry of the five-year period on March 31, the government revoked the tax and even demanded arrears for the previous five years.

“The representatives from the leather industry and the Council itself represented in front of the Minister concerned and the Chief Minister also”, said Mr Ahmed.

“Because of the tax, the cost of Mandi fee would have gone up tremendously, if it is valued percentage wise. So now a lot of people are relieved in UP because most of the employment is done only through mandis”, he added by saying.

The leather industry in the state provides direct and indirect job opportunities to around one million people.

Fibre2fashion News Desk - India

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