Union Budget 2011 at a glance for Indian Print Industry

Budget 2011 has largely impacted the duty on paper. Excise duty on writing and printing and industrial paper increased. from 4% to 5%. Customs duty on waste paper reduced from 5% to 2.5%, 1% excise duty introduced on wood pulp. Enhanced allocation for education is expected to give an impetus to demand for writing and printing paper.

Excise Duty
(Notification No.  4 /2011-CE dated the 1st.March 2011)
  • Corrugated boxes increased to – 5%
  • Corrugated board increased to – 5%
  • Corrugated boxes with duplex – 5%
  • Paper and board increased from - 0 to 5%
  • Paper and board increased From - 4 to 5%
  • Waste and scrap increased From – 4 to 5%
  • The central excise duty exemption available to clearances of paper manufactured from non-conventional material up to 3500 MT is being withdrawn.
  • The increase in excise duty from four to five per cent is expected to result in an increase of Rs 450-500 a tonne in writing and printing paper prices.
  • The domestic newsprint industry and waste paper-based producers together import around 3 million tonnes of waste paper annually.
  • Newsprint producers require 1.35 tonne waste paper to produce every tonne of newsprint.

Customs Duty
  • Basic customs duty on waste paper is being reduced from 5% to 2.5%
  • Basic customs duty on Rayon grade wood pulp is being reduced from 5% to 2.5%
  • Peak rate of Custom Duty held at its current level
 
Direct Tax
  • Personal Income Tax exemption limit hiked from Rs 1,60,000 to Rs 180,000.
  • For senior citizens, tax exemption limit increased to Rs 2,50,000.
  • For senior citizens above 80, the tax exemption limit has been raised to Rs 500,000.
  • Eligibility age for senior citizens is now 60 years against 65 years earlier
  • Exemption limit for women remains the same at Rs 2,40,000.
  • Current surcharge of 7.5 per cent on domestic companies proposed to be reduced to 5 per cent.
  • Rate of Minimum Alternative Tax proposed to be increased from 18 per cent to 18.5 per cent of book profits.
  • Additional deduction of ` 20,000 for investment in long-term infrastructure bonds proposed to be extended for one more year.

Additional Info
  • Reduction of duty for mailroom systems for newspapers
  • Some talk about special duty cuts for inkjet printers. I've to get the details.
  • Rs 21,000 cr outlay for Sarva Sikhsha Abhiyaan