The recycled paper mills in Andhra Pradesh have appealed to the Union Finance Minister and the GST council to either waive the GST (12 per cent) or reduce it drastically, as otherwise they will soon have to down the shutters.

At a press meet here on Monday, BV Rama Rao, president of the Federation of Andhra Pradesh Industry (FAPI), and B. Venkateswara Rao, an executive member of the federation, said that of the 37 recycled paper mills, mostly concentrated in the two Godavari districts, eight had already stopped operations due to several reasons and the rest would also have to follow suit, if the Government does not relent on the GST issue.

They said there was earlier no tax on recycled paper, but the State Government had imposed 5 per cent VAT and that had now been hiked to 12 per cent. They said, "There are 37 recycled paper mills in the State, with a combined capacity of 6,60,000 tonnes per annum, employing 25,000 persons directly or indirectly, with a turnover of Rs 2,500 crores. Therefore, the sector has to be saved."

They said there were roughly 1,000 such units in the country and 15 or so in Telangana. Most of the units were in a similar plight, due to high taxation and high power tariff. "Further, it is an eco-friendly industry and it is estimated that 1.4 crore trees are saved annually due to recycling of paper. The Government should save such a sector," they pleaded.

B.V Rama Rao said a meeting would be held at Kakinada on July 7 to discuss the problems of recycled paper units and other micro, small, and medium units in the Godavari districts.

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