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Assocham seeks 10% customs duty on pulp imports in Budget

Assocham seeks 10% customs duty on pulp imports in Budget

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  17 Jan 2018 12:00 AM GMT

New Delhi, Jan 16: Industry chamber Assocham has urged the Centre to impose 10 per cent customs duty on import of hardwood chemical pulp and bleached chemi-thermo mechanical pulp to encourage domestic production.

“The move will provide fillip to job creation and promote overall economic development of India’s vast rural hinterland housing pulpwood plantations,” the industry chamber said in a statement on Tuesday.

“These measures would help energise creation of sustaible sources of fibre required by Indian pulp and paper industry,” the industry body said in its pre-budget recommendations on indirect taxes submitted with the government.

“It is estimated that more than 1.25 million metric tonnes of pulp approximately valued at $710 million (about Rs 4,600 crore) is imported into India each year,” the statement said

In May 2012, government removed import duty on pulp. The customs duty foregone on account of these imports is estimated to be about Rs 245 crore per annum, according to ASSOCHAM.

“Consequent to the customs duty exemption, annual pulp imports are expected to increase significantly in near future to the levels of $2 billion,” it said.

“Development of plantation farming to produce raw materials for paper and paperboards industry is a readily available avenue for creating substantial employment opportunities on a sustaible basis,” said D.S. Rawat , Secretary General, ASSOCHAM. (IANS)

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