06 July 2011
(March 01, 2011) Union Budget 2011-12: Indirect Taxes
The budget proposals have a largely neutral impact on the paper industry.
Excise Duty: The excise duty on paper and paperboard has been increased from 4% to 5%.
(Notification No 2/2011 - Central Excise Dated 1st March , 2011) Customs Duty: The basic custom duty on paper and paper board has been retained at 10%.
The custom duty on wood pulp has also been retained at 5%. However the custom duty on waste paper has been reduced from 5% to 2.5%. MEANING
07 July 2011
Wood pulp is input material in paper industry. The rationale behind retaining Custom duty at 5% on wood pulp & reducing CD on waste paper from 5% to 2.5% is to conserve natural forest & maintain ecological balance.
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