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Our Bureau

Mumbai, Jan. 18 Paper manufacturers have demanded rationalisation of customs and excise duties on paper and paperboard.

Mr R. Narayan Moorthy, Secretary-General, Indian Paper Manufacturers Association (IPMA), the apex body of the large integrated paper manufacturers, said: “Paper and paper products face direct and indirect taxation of approximately 20 per cent. This includes the excise at 12 per cent, VAT and Octroi. Also, there are different rates of eight and 16 per cent prevailing for some categories. The rationalisation to a uniform rate of eight per cent in excise duty will add back Rs 292 crore over a short span to the exchequer once the size and scale of the industry touch a new high on the back of enabling growth policies.”

The IPMA has sought retention of customs duty at 10 per cent along with re-introduction of SAD (special additional duty) to maintain parity with global production cost. Any further reduction will discourage investment in the sector which is required to support the government thrust on the education sector, said Mr Pradeep Dhobale, President, IPMA. The association has submitted a memorandum in this regard to the Union Finance Minister, Mr P. Chidambaram. The IPMA pointed out that a serious handicap was the unavailability of quality raw material at competitive cost.

The association also requested the Government to consider adoption of the multi-stakeholder partnership model proposed by the Ministry of Environment and Forest for forestation of degraded land.

“We plead access to at least 2 per cent degraded forestland on lease in the radius of 150 - 200 km to paper mills. This will produce pulpable wood to achieve cost competitiveness in terms of wood and freight as well as generate employment, create wealth for the rural poor and protect the environment,” said Mr Moorthy.

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