New Delhi, January 18, 2018: Apex industry body ASSOCHAM has urged the Centre to impose 10 per cent customs duty on import of hardwood chemical pulp and bleached chemi-thermo mechanical pulp (BCTMP) to encourage domestic pulp production, provide fillip to job creation and promote overall economic development of India’s vast rural hinterland housing pulpwood plantations.
“These measures would help energise creation of sustainable sources of fibre required by Indian pulp and paper industry,” noted the ASSOCHAM pre-budget recommendations on indirect taxes submitted with the Union Government.
ASSOCHAM has also sought policy measures to be put in place to facilitate private sector participation in plantation development programmes.
Besides, the chamber has also recommended that import of capital goods required by paper and paperboard industry for technological up-gradation especially aimed at environmental protection and for compliance with Corporate Responsibility for Environmental Protection (CREP) be permitted at ‘nil’ rate of customs duty.
It has also suggested that exports by manufacturers who have adopted environment friendly technology are granted additional incentives as cash incentive of five per cent of Free on Board (FOB).
It is estimated that more than 1.25 million metric tonnes (MMT) of pulp approximately valued at 710 million dollar (about Rs 4,600 crore) is imported into India each year.
In May 2012, the Government reduced import duty on pulp from five per cent to ‘nil.’ The customs duty foregone on account of these imports is estimated to be about Rs 245 crore per annum.
Corporate Comm India(CCI Newswire)
