Question : EXCISE DUTY EXEMPTION ON BAMBOO PRODUCTS



(a) whether the Kerala State Bamboo Corporation Ltd. has approached the Union Government for exemption of central excise duty on Bamboo products;and

(b) if so,the reaction of the union Government thereto?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S.PALANIMANICKAM)

(a) Yes Sir,Government has received a request from the Government of Kerala to exempt Central Excise duty on certain items such as Bamboo board,incense sticks, toothpicks,bamboo blinds and waste briquettes manufactured by Kerala State Bamboo Corporation Ltd.

(b) Government has already exempted excise duty on Bambooply (Resin bonded Bamboomat board) in response to an earlier request from the Government of Kerala on behalf of Kerala State Bamboo Corporation Ltd. Incense sticks are also fully exempted from excise duty.As regards the remaining products,w.e.f. 712.2008 Government has effected a 4% reduction in the ad valorem excise duty rates on all manufactured goods. This will result in reduction in excise duty incidence on the excisable products manufactured by Kerala State Bamboo Corporation Ltd and serve as a measure of relief.No further reduction in excise duty rates on these items is under consideration of the Government at present.