Budget FY2004 cuts excise duty on paper to 8% from 16%
Not bad this time but industry pins more
By bringing down the excise duty to 8%, one can say that the budget has met the long-standing demand of the paper industry. Fiscal incentives for undertaking social/farm forestry activities on a large scale where also another expectation of the industry.
Withdrawal of the exemption of no excise duty on the first clearance of 3,500 MT of paper and a cut in the excise duty to 8% from 16% are the highlights of the season.
An increase in the basic customs duty on paper to 40 % from 30% is also good news to the industry. In case of newsprint there is an increase in the customs duty, from 5% to 25%. This along with exemptions from in excise duty, it was also hoping for a hike in customs duty on imported newsprint in order to safeguard the domestic industry. Industry further expects customs duty on paper to be cut down to about 50% of current levels.
The budget did not really put a smile on paper majors like Sirpur and Seshasayee Paper. Expect for a 4% excise duty on paperboards made from non-conventional sources, there wasn’t much a do here and the companies feel that the sector has not been really attended. So was the story with paper majors Sirpur and Ballarpur who seems to have not really got anything to rejoice from this year’s budget. TNPL has benefited a little, though. So is what seems from the figures of Seshasayee Papers.
