On September 3, the Indian government announced an adjustment to the tax rates on 22 categories of pulp and paper products, effective from September 22.
After the adjustment, education-related categories will be exempt from taxes. This includes paper used for exercise books and notebooks for school use, as well as finished exercise books and notebooks, with their tax rates reduced from 12% to zero.
Pulp and paper products with tax rates reduced from 12% to 5% include: mechanical pulp, chemical pulp, chemi-mechanical pulp, waste paper pulp, corrugated cardboard boxes, paper boxes, molded pulp products, paper bags, and others.
Pulp and paper products with tax rates increased from 12% to 18% include: dissolving pulp, uncoated printing paper, coated printing paper, uncoated kraft paper, greaseproof paper, composite paper and paperboard, and others.
This tax rate adjustment is part of the Indian government’s tax reform efforts, aimed at simplifying the four-tier tax structure into two main rates of 18% and 5%.