Will Excise Duty Cuts Reach The End Consumer? - Papermart

Will Excise Duty Cuts Reach The End Consumer?

Printing & Packaging Companies Demand Action
Paperboard printing and pack- aging manufacturers across the country led by their core associations have asked paper and board mills to pass the excise duty benefit of 4% to the end consumer. This is to ensure that the objectives of boosting growth and generating consumer demand envisioned by the government are met.
excise dutyMrs Amila Singhvi, President, Indian Carton Manufacturers Association (ICMA), the apex body of paper board packaging manufacturers, opined, “Customers expect the excise duty cut to translate into lower MRPs. This seems unlikely given that the landed price of board to packaging manufacturers has not declined. We hear that board mills may not lower prices in accordance with the duty cut, which will defeat the objectives set out by the government.”
“Laminate manufacturers have already dropped since September and customers expect board manufacturers to follow suit. Consumption of flexible packaging is showing an upward trend while that of carton board is not growing similarly as it remains more expensive. We need to remain competitive vis-à- vis laminates in order to grow demand for carton board packaging.”
Echoing the view, Mr Parveen Aggarwal of Bharat Box Factory, said, “Paper board prices continue to remain high. Paper board constitutes 70% of the cost of the printed carton. We request board mills to ensure that the prices of their products remain competitive. Reduction in excise duty must not result in higher basic prices of paper board.”