The excise duty on foot wear was exempt, if a pair of non leather footwear cost Rs 250. However, the Union Budget 2012-13 has hiked the basic exemption limit to Rs 500 per pair in respect of non leather footwear.

On the flipside, the excise duty on foot wear costing more than Rs 500 per pair has been hiked from 10% to 12%.

Bata India, Liberty Shoes, Relaxo Footwear and Lakhani India are the major beneficiaries of removal of excise duty on footwear costing upto Rs 500 per pair. Mirza International will be another beneficiary, but the benefits are restricted, as sizeable portion of its revenue come from exports.

The beneficial impact will be partly rubbed off by hike in excise duty to 12% on footwear costing more than Rs 500 per pair for the above players.