Excise Reduction
Excise duty has been fully exempted on paper and paper products manufactured from non-conventional raw materials, upto first clearance of 3500 metric tonne in a year from a unit.
Excise duty on paper and paper products, manufactured from non-conventional raw materials, beyond clearance of 3500 metric tonne per year from a unit (not having an attached bamboo/wood pulp plant) has been reduced from 12% to 8%.
Excise duty on writing paper, printing paper and packaging paper falling under heading nos. 4802, 4804, 4805, 4807, 4808 and 4810 has been reduced from 12% to 8%.
Indirect benefit of the budget proposal
(a) (a) 20% hike in Education budget this year from Rs. 28,674 crorer (2007-08) to Rs. 34,400 crore which will result in increased expenditure on education.
Impact :- POSITIVE
(b) Earmarked Rs. 13100 crore for Sarva Shiksha Abhyan
Impact:
(i) No change in peak rate of custom duty
(ii) General CENVAT rate cut on all goods (14%)
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