Tax threatens Indian paper community


23 February 2005 – Lucknow (IND): The paper industry in the north Indian province of Uttar Pradesh has been threatened by a local government order to increase the entry tax and introduce a trade tax on paper and paper products.

Entry tax will rise from 4 to 5 per cent, and the new trade tax will be set at 8 per cent on paper and 10 per cent on paper products, it emerged.

The new order will make paper products in the state 13 per cent costlier than neighbouring states, say industry sources, to the point where many paper manufacturers would be forced to stop production or move to other states.