Govt proposes 20 per cent 'safeguard' duty on imported paper

The Government has proposed 20 per cent "safeguard" duty on import of coated paper and paperboard with a view to protecting the domestic paper industry but printers and publishers have decried the move.     

"The entire education system will get affected as books become expensive (because of) 20 per cent ad valorem duty on imports of coated paper, as recommended by the Directorate General of Safeguards," All India Federation of Master Printers President Subhash Chander said.     

In a notification, the Safeguards Office has said imports of coated paper and paper board from China and Indonesia have caused "injury" to the domestic industry.     

However, these preliminary findings are being contested by printers and publishers, including the books and printing panel of export body Chemicals and Allied Products Export Promotion Council (CAPEXIL).     

Chander said there is no case for protecting domestic paper manufacturers, who had increased the prices of the key raw material for books by 25 per cent last year."On top of the price increase, paper manufacturers gobbled up 12 per cent excise duty reduction announced last year," he said.     

Chander said while paper is available at Rs 35 a kg in the international market, the domestic industry is selling it for Rs 54-55 per kg.