Union Budget 2011 and print industry
Union Budget 2011-12 is to significantly influence the print industry, with major changes in taxation. Concessional rate of excise duty on paper and paper articles is being increased from four percent to five percent. Exemption from excise duty available to clearances up to 3,500 metric tone of paper manufactured from non-conventional material is being withdrawn. While cotton stalk particle boards are being fully exempted from excise duty. Concessional rate of five percent excise duty is being extended to corrugated boxes whether or not pasted with duplex sheet on their outer surface. Excise duty is being reduced from ten percent to five percent on greaseproof paper and glassine paper. Excise duty/CVD is being reduced to five percent and SAD to NIL on parts of inkjet & laser jet printers imported by actual users for manufacture of printers.
The concessional rate of duty of five percent BCD, five percent excise duty/CVD & Nil SAD presently applicable to high speed machinery (>70000 copies per hour) is being extended to mailroom equipment viz. overhead conveyor gripper, stacker, wrapper, labeler, strapper, inserters and delivery conveyors designed for use with high speed printing machines with a minimum speed of 70000 copies per hour, imported by newspapers registered with Registrar of Newspapers of India (RNI). Also, the basic customs duty on waste paper and Rayon grade wood pulp is being reduced from 5 to 2.5 percent.
Under the proposed amendments in the schedules to Central Excise Tariff Act, 1985, a chapter note is being inserted in Chapter 22 so as to provide that in relation to products of this chapter, labelling or re-labelling of containers or packing or re-packing from bulk packs to retail packs or the adoption of any treatment to render the product marketable to the consumer, shall amount to manufacture. Also, two chapter notes are being inserted in chapter 63 so as to define the expression ‘brand name’ and to provide that affixing a brand name on the product, labelling or re-labelling of containers or packing or repacking from bulk packs to retail packs or the adoption of any treatment to render the product marketable to the consumer, shall amount to manufacture.
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