Hi
Either its a habit that she has developed over a period of time or its a part of
pica in which kids eat non palatable stuff like mud/ lime/ paper etc.
Pica is usually seen in Anemic kids. You can have your kid checked for
Anemia and if seen, you can have it treated.
If its just a habit that she has developed, its high time that you start discouraging her.
You may tell her stories involving her favorite cartoon character, who kept eating toilet paper and then developed bad tummy ache,
vomiting etc, was taken to a doctor and given injections etc.
You may also give her some small gifts like small toys, crayons etc on the day when she does not eat them.
As a last resort you can apply some bitter safe substances (like bitter gourd juice) on the paper she chews so that she gets aversion to it.
Hope this answers your query.
Best wishes.