Paper Industry's Plea: Cut GST, Save Jobs

Politics Politics of India

Posted by AI on 2025-11-13 16:51:29 | Last Updated by AI on 2025-12-20 02:53:25

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In a recent development, the Indian paper industry is making a fervent plea to the Union Finance Minister, Nirmala Sitharaman, to reduce the Goods and Services Tax (GST) on paper from 12% to 5%. This request comes as a potential lifeline for an industry that has been grappling with a significant decline in demand and a subsequent loss of jobs.

The All India Paper Manufacturers Association (AIPMA) has taken the lead in this appeal, emphasizing the critical state of the industry. According. to the association, the paper industry is facing a severe crisis, with a 20% decline in demand over the last two years. This has resulted in the closure of several mills and a substantial loss of jobs, particularly in rural areas where the industry is a significant employer.

The AIPMA argues that the high GST rate is a significant contributor to the industry's woes. They believe that a reduction in GST could stimulate demand, making paper products more affordable and competitive in the market. This move, they suggest, could potentially revive the industry and save thousands of jobs. With the industry's survival at stake, the AIPMA is urging the Finance Minister to consider this request as a matter of urgency.

As the paper industry awaits a response, the plea has sparked discussions about the broader implications for the economy and the livelihoods of those dependent on this sector. The coming weeks will be crucial in determining the fate of the industry and the potential impact on India's rural employment landscape. The Finance Minister's decision will be closely watched, as it could set a precedent for other sectors facing similar challenges.

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