Dec 05, 2005. /Lesprom Network/. The Indian paper industry has been in talks with the government regarding a fund for the paper industry on lines similar to the textile technology upgradation fund scheme (TUFS) allotted to the textile industry. "The paper machinery is obsolete and the government realizes the need for support to this core industry," Mr. Rajeev R. Vederah, president, Indian Paper Manufacturers Association, said. He was speaking on the sidelines of a conference to announce the oncoming Paperex 2005 fair. In order to improve competitiveness, the paper industry has also mooted several pre-budget proposals, including asking for excise duty of 8% to be made applicable uniformly for all varieties of paper, including newsprint. The main highlights of the pre-budget memorandum compiled by FICCI pertain to requisite changes in customs and excise duties. The memorandum states that the government should retain the basic customs duty on paper at the current level of 15%, adding that the bound rate of duty under WTO is 40% for most varieties of paper. Furthermore, it suggests to the government that it consider withdrawing the special excise duty concessions that are granted to the existing and new paper mills in certain states such as Uttaranchal, Assam, and Himachal Pradesh. The withdrawal would widen the tax base and it would be a level playing field for all.