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Zero customs duty on paper imports leads to Rs 80 cr revenue loss
New Delhi, Jan 24 (IANS) Industry lobby Assocham on Wednesday urged the Central government to re-impose 10 per cent customs duty on import of paper and paperboards from the Asean as the zero rate leads to a loss of estimated revenue of Rs 80 crore per annum to the government.
According to the industry chamber, along with a loss in revenue, the imports lead to an export of domestic jobs to other countries and significantly impacts economic viability of many paper mills across the country.
“Nil rate of customs duty on import of paper and paperboards from Asean countries leads not only to revenue loss of about Rs 80 crore per annum to the Indian government but it also leads to exporting of domestic jobs to other countries and significantly impacts economic viability of many paper mills across India,” Assocham said in its pre-Budget recommendations on indirect taxes submitted to the Central government.
The industry chamber pointed out that while import of paper and paperboards from Asean (Association of Southeast Asian Nations) and China into India has increased at a compounded annual growth rate (CAGR) of 39 per cent and 14 per cent respectively, it is likely to accelerate further in view of higher capacity creation in China and Asean duty moving to nil rate from January 1, 2014.
In its recommendations, the industry lobby suggested that the government kept the paper and paperboard products in the negative list while reviewing existing and formulating new free trade agreements (FTAs) in order to provide a level-playing field to the domestic industry.
“Such measures would ensure that capital already invested and proposed to be invested in further capacity creation by domestic industry is safeguarded, incentivised and grown further,” said Assocham.
According to the industry chamber, the current demand for paper and paperboards in the Indian market was 14.4 million tonnes per annum (MTPA) or about 3.6 per cent of the global demand and was expected to rise to 20 MTPA by 2020, thereby clocking a CAGR of about 7 per cent.
Though domestic industry has made significant capital investments to ramp up capacities in the paper and paperboards sector, its economic viability was severely impacted owing to availability and cost of raw materials and other inputs, said Assocham.
“Even as industry is grappling with the issue of producing paper and paperboards at competitive costs, the problem has been exacerbated by government’s policy of extending preferential tariff treatment to the sector under FTAs and other bilateral/multi-lateral trade agreements and pacts,” said D.S. Rawat, Secretary General of Assocham.
Assocham said India had signed an FTA with Asean as per which import duties on most of the paper and paperboards was progressively reduced from a base rate of 10 per cent to 7.5 per cent from January 1, 2010, 5 per cent from January 1, 2011, 2.5 per cent from January 1, 2013 and to nil rate from January 1, 2014.
Further, economic slowdown in developed economies and export dependent economies like Asean have led to excess capacity in paper and paperboard manufacturing countries.
As such, these countries find India as an attractive outlet for diverting their excess inventory thereby taking advantage of low customs duty rates, Assocham said.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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