Union Budget 2024-25 highlights
No. CLE-HO/POL/CIRCULAR/2024
23rd July 2024
Members of the Council
Sub : Union Budget 2024-25 highlights
Dear Member
The following are the highlights of the Union Budget 2024-25 presented by Hon’ble Union Minister of Finance today, pertaining to leather and footwear sector, which will come into effect from 24th July 2024.
– Vide Customs Notification No. 37/2024 dated 23rd July 2024 (copy enclosed), the export duty on wet blue and crust leather (HSN 4104 to 4106) have been reduced from 40% to 20%. The export duty will remain at 30% for raw hides and skins of buffalo and 40% for other raw hides and skins. The export duty will continue to remain “Nil” for finished leather and EI tanned leather. There will be 40% export duty on raw fur skins under 4301 and 20% on tanned or dressed fur skins under 4302.
– Customs duty on Real Down Filling Material from Duck or Goose, when imported by bona fide exporters for use in the manufacture of textile or leather garments, for export reduced from 30% to 10% (Serial No. 6BE of Customs Notification No. 30/2024 dated 23rd July 2024 may be referred). This reduced duty is subject to following conditions
CONDITION No. 108 : If the items manufactured using the imported goods are exported by the importer within six months of the date of the import of the said imported goods.
CONDITION No. 9 : If the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty – IGCR) Rules, 2017.
– Under ICGR duty free scheme – more inputs (including wet blue chrome tanned leather, wet white leather, crust leather and finished leather) added vide Customs Notification No. 30/2024 dated 23.7.24. Serial nos. 18 – 30 of List 39 are the new items added for leather garment exporters and serial no. 15 to 33 of list 40 are the new items added for footwear and leather product exporters. It may be noted that IGCR Scheme is also subject to aforementioned conditions no. 9 and 108.
The Hon’ble Union Finance Minister also announced the following measures in the Union Budget 2024 -25 speech.
Employment Linked Incentive
Government will implement following 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers.
Scheme A: First Timers : This scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in 3 instalments to first-time employees, as registered in the EPFO, will be up to Rs. 15,000. The eligibility limit will be a salary of Rs. 1 lakh per month. The scheme is expected to benefit 210 lakh youth.
Scheme B: Job Creation in manufacturing : This scheme will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees. An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment. The scheme is expected to benefit 30 lakh youth entering employment, and their employers.
Scheme C: Support to employers : This employer-focussed scheme will cover additional employment in all sectors. All additional employment within a salary of Rs. 1 lakh per month will be counted. The government will reimburse to employers up to Rs. 3,000 per month for 2 years towards their EPFO contribution for each additional employee. The scheme is expected to incentivize additional employment of 50 lakh persons.
Besides, the following measures were also announced.
Participation of women in the workforce : Higher participation of women in the workforce will be facilitated through setting up of working women hostels in collaboration with industry, and establishing creches. In addition, the partnership will seek to organize women-specific skilling programmes, and promotion of market access for women SHG enterprises.
Skilling programme : A new centrally sponsored scheme, as the 4th scheme under the Prime Minister’s package, for skilling in collaboration with state governments and Industry is announced. 20 lakh youth will be skilled over a 5-year period. 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. Course content and design will be aligned to the skill needs of industry, and new courses will be introduced for emerging needs.
Skilling Loans : The Model Skill Loan Scheme will be revised to facilitate loans up to Rs. 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.
With kind regards
R. Selvam
Executive Director