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Paper industry has critical importance for the educational sector. Despite this, paper and paper products face direct and indirect taxation of approximately 20 per cent. This includes current excise at 12 per cent, VAT, octroi etc. Also, there are different rates of 8 per cent and 16 per cent prevailing for some categories. The rationalisation to a uniform rate of 8 per cent in excise duty will add back Rs 292 crore over a short span to the exchequer once the size and scal e of the industry touch a new high on the back of enabling growth policies. In the case of customs duties, retention of customs duty at 10 per cent along with re-introduction of SAD would go a long way in maintaining parity in respect of global production costs. This is because further reduction will discourage investments in this sector which are urgently required to support the Government thrust on education sector. Paper industry is today operating with farm forestry and agri-residues creating jobs in farm sector. So I feel the Government needs to look at this sector just like the agro-sector.

Pradeep Dhobale, President,

Indian Paper Manufacturers’ Association

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