The Hindu : National : IPMA seeks rationalisation of duties

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Friday, Jan 18, 2008
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IPMA seeks rationalisation of duties

Special Correspondent

NEW DELHI: The Indian Paper Manufacturers Association (IPMA), apex body of the large integrated paper manufacturers in the country, has urged the Union Finance Minister, P. Chidambaram, to rationalise Excise and Customs duties applicable to the paper and paperboards industry in the coming budget.

In a memorandum submitted to the Minister, the IPMA wanted the government to rationalise the Excise duty from 12 per cent to 8 per cent on all varieties of paper and paperboard.

IPMA Secretary General R. Narayan Moorthy said: “Despite the paper industry’s critical importance for the educational sector and significant forward linkages to other manufacturing industries, paper and paper products face direct and indirect taxation of approximately 20 per cent. This includes excise at 12 per cent, VAT and octroi.

“There are different rates of 8 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.”

In the case of Customs duties, the IPMA sought the retention of Customs duty at 10 per cent along with re-introduction of SAD to maintain parity in global production costs. Any further reduction would discourage investments in this sector that are required badly to support the government thrust on the education sector, it said.

It urged the government to consider import of capital goods required for Environmental Up-gradation and CREP compliance at zero per cent Customs duty.

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