A step further
FM has taken the economic reforms process in the country a step further by introducing a number of fiscal measures, writes Rajeev R Vederah, President IPMA.india Updated: Mar 01, 2006 17:49 IST
We see the budget as another step towards macro economic development of the country entailing widespread development in the rural sector as well as the major urban centres of the country.
The Hon’ble Finance Minister has taken the economic reforms process in the country a step further by introducing a number of fiscal measures like rationalization of duties and taxes, reduction of peak customs duty, spelling reforms in the banking and infrastructure sectors and also simplifying the tax administration.
As far as the paper industry is concerned, we are pleased with the forward-looking policies of this budget. The Indian paper industry’s oft-repeated plea for rationalization of excise duty has been satisfactorily addressed. In the past, a slew of notifications had rendered the excise duty structure totally fractured. The Finance Minister’s proposition to bring down the excise duty from 16 % to 12 % on writing, printing and packaging paper would enable the domestic industry to grow to its full potential. This would also usher in a level playing field to all paper manufacturers and would create a conducive environment for the paper market in the country.
We are also happy to an extent that the peak customs duty has not been dropped down further from 15 % to 10%. Instead it is now pegged at 12.5 % and a further safeguard has been provided in the form of 4% CVD. These are very positive signs for the domestic paper industry to be competitive.”
(Rajeev R Vederah, President, Indian Paper Manufacturers Association (IPMA))