It was decided that CST will be gradually reduced to zero as a part of the process of bringing in the Goods and services tax (GST) regime, claimed Arup Dutta, president, CPTA.
There were two subsequent rate cuts in the last two years and the CST had come down from 4 per cent to 2 per cent, he added.
The last rate cut, however, has not been implemented and the paper traders continue to pay at the earlier rate of 3 per cent, CPTA alleged.
CST is paid when goods are imported into one state from other states.
This apart, the central government had announced a 4 per cent reduction in excise duties for paper mills, which was not passed on to the consumer by the manufacturers, Dutta said.
The prices of paper and paper products have soared by a margin of around 10 per cent and above across categories in the last six months.
Prices of printing paper varied between Rs 34-50 per kilogramme(kg) depending on specifications, while coated paper costs around Rs 68 per kg, Dutta informed.
The margin of 1 to 1.5 per cent charged by traders remained stable.
The input costs had risen by 30 to 40 per cent over the last one year, informed sources in the paper industry.
As against that the paper companies had hiked prices only by around 10 per cent across products, the source added.
