Can local producers sate demand for leather products?

Editor, RE: “Tax on used leather products set to rise” (The New Times, November 25).

Thursday, November 26, 2015

Editor,

RE: "Tax on used leather products set to rise” (The New Times, November 25).

Good signal of support to the cluster, but this can also be perceived as a quite early fiscal measure in the change process.

Can’t these fiscal measures be set as a condition i.e. subject/consecutive to the success of the cluster’s initiative to put up the needed for the local production of decent and affordable leather shoes substituting the current affordable high quality second-hand shoes supply?

What if the sector fails (like in the past) to supply the quantity and the minimum level of quality expected in the market after the application of the 100 per cent tax increase on imported second hand shoes?

Such tax changes are effected by the government to improve the economy; to achieve this, the cluster has a huge responsibility to succeed in substituting second-hand leather products (especially shoes) in terms of quantity, quality and price. Otherwise this move will simply translate into price increase for our people.

TK