Govt withdraws excise levy on jute products

The Finance Ministry on Thursday withdrew the 10 per cent excise duty levied on jute products in March this year.

"The ministry in a corrigendum to the March 24, 2011 notification maintained the exemption of excise duty on the jute products except laminated jute bags," an official source said here today.

"We are happy as the corrigendum from the ministry has brought relief to the Rs 6,000 crore industry," Ex-Indian Jute Mills Association Chairman and an industry veteran Sanjay Kajaria said.

In March, the Union government had 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 threatened to cripple the fate of 2.5 lakh workers.

He added that the decision to levy 10 per cent excise duty was an error of part of the ministry as jute comes under textiles and branded garments on which excise duty has already been levied.