New Delhi, Feb. 28
The Finance Minister, Mr P. Chidambaram, has proposed a cut in the excise duty for paper products from 16 per cent to 12 per cent.
Mr Chidambaram, in his speech said: "Paper finds widespread use in education as well as in packaging. In order to encourage capacity addition, I propose to reduce the excise duty on specified printing, writing and packing paper from 16 per cent to 12 per cent."
Previously, 65 per cent of the paper products were subject to a 12 per cent excise duty and the move to reduce the duty would bring in the remaining 35 per cent of the products under the same bracket. The move was welcomed by paper manufacturers and is expected to bring about a level playing field for the industry.