Telangana Paper Mercants Seek GST Cut to 5%, Dedicated Warehouse Cluster in Hyderabad
Hyderabad, Sept 28(TNT): The Telangana Paper Merchants Association (TPMA) on Monday urged the government to reduce GST on paper from 18 per cent to 5 per cent and establish a dedicated warehouse cluster in Hyderabad, citing rising input costs, competition from imports and increasing logistics expenses.
Talking to reporters here, TPMA president Abhishek Vijaywargiya said the Indian paper industry produced around 22 million tonnes annually and was growing at 7 to 8 per cent a year, driven largely by rising demand from the packaging sector.
India’s per capita paper consumption stood at around 16 kg annually, compared with the global average of 56 kg, indicating significant scope for growth, he said.
Vijaywargiya said the industry was facing challenges due to imports from China and Indonesia.
He also expressed concern over the impact of the zero per cent GST on notebooks under the revised GST structure and called for a uniform 5 per cent tax rate on paper.
Describing paper as an essential commodity, he urged the government to promote its use as an environmentally friendly alternative to plastic and create greater awareness about sustainable paper manufacturing.
He said around 70 to 75 per cent of paper was recycled, while bagasse accounted for about 8 per cent of raw material use. Paper mills also cultivated trees specifically for paper production and supplied saplings to farmers, he added.
The industry provided direct employment to around five lakh people and indirect employment to another 15 lakh, contributing to forestry, agriculture and the wider economy, he said.
Vijaywargiya said the ongoing war had affected input costs, with paper prices increasing by around 10 to 15 per cent. India imported softwood pulp from Scandinavian and European countries, as well as Russia, he added.
Tirumala Balaji Paper Pvt Ltd Managing Director T. Kishan Singh, who is set to take over as the nominee president of the Federation of Paper Traders Association (FPTA) next month, said the association had urged the government to establish a dedicated warehouse cluster in Hyderabad with adequate road connectivity and parking facilities for goods vehicles.
As paper dealers were spread across the city, a common warehouse facility would help reduce transportation costs and fuel consumption while benefiting paper traders and printers, he said.
The association would take up the issue with the government at its annual general meeting and conference, he added.
TNT TS
