NEW DELHI, August 11: The central excise authorities are planning to place the premium category of branded footwear under the maximum retail price (MRP) net. This move is likely to affect all products in the price range above Rs 500 a pair.

The present move is aimed at collecting revenues from products which have very large mark-up. According to excise department officials, the mark-up of these shoes, especially the foreign brands is very high. The average mark-up for well-known foreign brands such as Reebok, Nike and Addidas, according to excise officials, is in the region of 130 per cent.

The exact percentage of MRP on which excise will be levied will be decided by the government once the matter is finalised.

The MRP will also be applicable on the domestic players. The mark-up in the case of the domestic players is much less as compared to their foreign counterparts, but is still considerably high, and is believed to be in the region of 70-80 per cent.y

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