Nov 29, 2005. /Lesprom Network/. The INR 17 000 crore ($3.7 billion) domestic paper industry, that contributes about INR 2 500 crore ($544.8 million) to the exchequer, is seeking tax relief from the government. “The paper imports attract a duty of about 60%, which is a sum of 40% import duty and excise duty ranging from 0% to 16% depending upon the product and volume. There should be a uniform rate of 8% on this,” said R. Narayan Moorthy, secretary general, Indian Paper Manufacturers Association (IPMA). “If the government charges heavy tax on paper, the producers have to pass the burden to consumers. Due to which the students, newpaper and magazine readers suffer lot,” said Rajeev R. Vederah, president, Indian Paper Manufacturers Association. The industry argues that the government by bringing about some policy changes may even help hindering migration from rural areas to urban areas as paper industry by and large exists in the rural areas. “If the government promotes paper industry, a large chunk of rural youth would prefer not to migrate to urban areas as they would get earning opportunities in their own locality,” said Pradeep Dhobale, vice president, IPMA and chief executive, ITC, paperboards and speciality papers division. Generally, paper industry grows in tune with country’s gross domestic product (GDP). As GDP is expected to grow by 6.5% this year, the industry expects a growth rate of little ahead of 7% this year. Segmentwise, newsprint is expected to grow 4% while, healthy demand from industry would lift paper board growth rate by 9%. But, cultural paper industry is estimated to grow by 7% this year. On environmental issues Mr. Moorthy said the industry consumed only 1% tree cut while the rest 99% is used for fuel in rural areas. He demanded some piece of land be given to the industry where trees could be grown exclusively for the sector. This, he said, would also provide employment to about three lakh youths.