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Senior Congress chief Siddaramaiah has requested the Centre to exempt printing paper of newspapers from the purview of Goods and Services Taxes (GST), saying many regulatory insurance policies have affected their operations and funds.
In a letter addressed to Prime Minister Narendra Modi, Siddaramaiah stated, I urge you to take away GST on printing paper, create differentiation between Registrar of the Newspapers of India (RNI) registered and unregistered businesses on the time of buying printing papers, and supply incentive to printing paper manufacturing items that make high quality paper from cellulose fibres. According to Siddaramaiah, the tax on printing paper for RNI registered businesses earlier than GST implementation was at three per cent, and it was elevated to 5 per cent below GST system.
This is a rise of 68 per cent in taxes on printing paper. The GST for unregistered businesses is at 12 per cent. As there isn’t a mechanism to differentiate between registered and unregistered businesses at buying level, the unregistered businesses are buying printing paper at 5 per cent as a substitute of 12 per cent, creating scarcity of papers for registered businesses. This scarcity has additionally resulted in enhance in the price of printing papers as effectively. The authorities has to contemplate lowering the GST charges for registered businesses and create a differentiating mechanism to establish registered and unregistered businesses, the previous CM stated within the letter, a replica of which was shared with the media. Supply chain disruptions due to pandemic, labour scarcity, uncooked materials price, scarcity of transport containers and gas worth hike have contributed to drastic enhance in printing costs, he famous. The price of 1 ton of imported printing paper was $300 or Rs 23,000 earlier than the pandemic, and it has reached about Rs 55,000-Rs 60,000 now. Nearly 56 per cent of paper was imported and 44 per cent was manufactured domestically, Siddaramaiah, who’s the chief of opposition within the Karnataka meeting stated. Referring to the continuing Ukraine-Russia battle, he stated since many of the imports are from Russia and Europe, the disruption has elevated drastically due to the battle. Siddaramaiah additionally identified that the price of printing paper having doubled in final two years and enhance in GST have precipitated an enormous burden on print media homes to sustainably proceed the printing of newspapers.
(Only the headline and movie of this report might have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)
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