The Council for Leather Exports (CLE) today said bringing down certain products of the sector in the lower slab of the GST (Goods and Services Tax) will give a huge boost to its growth.
"Announcement of GST Council to bring leather goods and garments under 18 per cent from 28 per cent and finished leather under 5 per cent from 12 per cent is a big relief and breather to the industry," CLE Chairman Mukhtarul Amin said in a statement.
He said that these measures will boost leather exports and help exporter to take more orders from overseas buyers.
"Now, Industry feels relieved and would be encouraged to focus more on business," he added.
Further, he said that job work in the leather industry is first step to move up in the value chain and if the job work in the sector is taxed at 18 per cent, then it will prevent the new generation to enter into business.
He also demanded to reduce the GST rates on Common Effluent Treatment Plant from 18 per cent to 5 per cent before the GST council.
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