“Reduction in excise duty on pens, markers, exports and machinery”The writing instruments industry in India is currently touted at Rs. 3000 crore, employing more than one million people directly or indirectly. Placed mostly in the small and medium sector, approximately 60 % employees in the industry are women. Though the Industry has the potential to compete with International brands; it is facing tough competition from the domestic as well as international market. The government policies are strict which mars the growth of this industry.
At present, 8% excise duty is levied on pens/ ball point pens above the price range of Rs. 200. If the excise duty is exempted, it will not only encourage local manufacturers to reestablish themselves in the local market but also make threshold in the overseas market.
Inks of Marker pens and highlighter pens, which are widely used in the Indian market, also attract Excise Duty of 8%. They are new technology inks and if the duty is exempted, it will certainly boost the growth of Indian Writing Ink Manufacturers.
To help the industry seek International recognition and compete with the likes of China, there is a need to increase the DEPB rates by at least 3.5% from the current 5% against export of writing instruments and 4% on the parts of writing instruments. .
The Current Custom/Excise duty on moulds/ machinery is as high as 22%. In a scenario where consumers look for the aesthetic appeal while buying a new pen, it become tough for the local manufactures to invest in new technology due to the high duty tax structure. If this tax is reduced to a minimum level of 5%, it will enable the manufacturers to invest in new machinery and compete with International players.
D K Jain
Vice President
Writing Instrument Manufacturer’s Organisation (India)
New Delhi
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