Shoe shops told to absorb €1.50 tax on Chinese and Vietnamese footwear

FOOT fashionistas could be hit with price hikes of several euro per pair of shoes once a new tax kicks in.

The first phase of a new tax of €1.50 on a pair of adult leather shoes from China and Vietnam was introduced this month. And shoe shops and wholesalers, who buy shoes for around €8.50 a pair and sell them to customers for up to €120, have been warned not to take advantage of the tax to boost profits. They have also been told the tax does not apply to children's or non-leather shoes.

The tax is an anti-dumping measure imposed by EU Trade Commissioner Peter Mandelson to stop China and Vietnam flooding the European market with state-subsidised shoes.