Finance Ministry slaps 10 percent excise duty on jute items

The Union government has slapped an excise duty of 10 per cent on jute products that constitute about 80 per cent of the Rs 6,000 crore industry and threatens to cripple the fate of 2.5 lakh workers. “This 10 per cent central excise duty on the jute sector will bring great trouble to the industry and increase the cost of jute packaging products,” industry veteran Sanjay Kajaria said.

He believes this could be an error of part of the ministry as jute comes under textiles and branded garments on which excise duty has already been levied.

All export orders have been stalled because of the notification, Kajaria informed.

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1. Clarification on Levy of 1 Percent Excise Duty without Cenvat Credit on 130 items
2. Amends notification no. 1/2011 – Effective Rate of duty as 1 percent on certain items- Notification No. 21/2011-Central Excise-CE
3. Budget 2011- Branded garments to cost upto 15 Percent more on excise duty
4. Amends notification no. 2/2011 – Effective Rate of duty as 5 Percent with cenvat credit on certain items – Notification No. 22/2011-Central Excise-CE
5. 130 new items under excise duty, Mandatory on Readymade Garments- Budget 2011-12