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Changes to tax - wood based panel sector has not of its raw material is sourced from farm grown timber, says
benefitted that the tax rate should be uniform to level the playing field.
Recently Central government announced the GST (Goods & The All Bharat Plywood & Laminates Trade Association
Services Tax) reforms which eliminated the 28 percent and 12 (ABPLTA) also requested the Finance Minister to review the

percent tax on multiple consumer goods, however, the wood GST on panel products saying that now 100% of the raw
based panel sector has not benefitted from the recent changes material comes from agro-based plantations and a lower GST
despite a flurry of letters from various industry associations will directly benefit farmers. FIPPI also joined conglomeration
seeking to bring the GST on agro-forestry sourced plywood of associations making an appeal to the Minister.
product from the current 18 percent to five percent. From an environmental point of view, AIPLI also highlighted
Following the recent GST revisions the tax rates on bagasse- that promoting the wood panel sector through a lower GST
based particleboard and cement bonded particleboard have rate would incentivise the use of sustainable material and
been brought down from 12 percent to five percent whereas align tax policy with the country’s environmental commitments
the rate on craft paper and print base paper used in high adding that lowering the GST on agroforestry sourced wood

pressure laminate manufacturing has been increased from 12 and wood panels made from such material would support the
percent to 18 percent. government’s affordable housing goals, enhance farmer incomes
Plywood associations across the country such as the by encouraging agroforestry and improve tax compliance by
Federation of Indian Plywood and Panel Industry, the Haryana reducing inventive for tax evasion.
Plywood Manufacturers Association, the Punjab Plywood
Manufacturers Association, the UP-PWMA Utter Pradesh VIETNAM
Plywood Manufacturers Association, the All Bharat Plywood & Wood and Wood Product (W&P) trade highlights

Laminate Trade Association and many others have requested Vietnam’s W&WP exports in October 2025 reached US$1.55
the finance ministry to reduce the 18 percent rate on agro- billion, the same as in October 2024 of which WP exports
forestry based plywood products. contributed US$1.07 billion, up 14 percent compared to
The plea had been made in the interest of farmers, engaged October 2024.
in agro-forestry which is a significant source of their income. In the first 10 months of 2025 W&WP exports earned
In this context the Himachal Pradesh Plywood Manufacturers US$14 billion, up six percent over the same period in 2024
Association wrote to the Chief Minister seeking his intervention.
In its appeal the Association wrote “Plywood is directly
connected with thousands of farmers irrespective of their

states. 60 percent of our raw material is farm grown timber. АААААА АААААА 1967
Because of plywood factories, vast number of trees continues
to exist on the farmland which improves the environment and
fixes the carbon”.
Haryana State has been a major plywood manufacturing
hub for the last 30 years and a GST reduction on plywood
will boost the economy and create employment in the state

the letter mentioned.
The Plywood industry in Punjab, with over 90 percent