Plastics manufacturers demand increase in import duty of finished plastic goods to 20%.

KOCHI: The plastic manufacturers have urged the Centre to raise the import duty of imported plastic products for the survival of the plastics industry in the country. Under FTAs signed by India, finished plastics goods attract preferential import duties which are declining over the period. The All India Plastic Manufacturers Association has urged the Union government to increase the import duty on all imported plastic products to a minimum of 20%.

According to the association, the plastics processing sector comprises over 50,000 units, 90% of which are in SME segment, employing over 4 million workers. Unbridled import along and other factors are threatening the survival of industry .

With the polymer raw material prices increasing as much as 30%, the small and medium enterprises are facing huge shortage of working capital. The association has requested the government to enhance the sanctioned working capital of SMEs by 30% on ad hoc basis to enable them to overcome the financial crunch and continue the operation. They have also urged the government to roll back duty on all imported raw materials from 7.5% to 5 %.

The plastics manufacturers have said the anti-dumping duty on PVC resin is redundant as India imports 60% of its requirement of PVC. Another demand is to revise the VAT on plastic from 12.5% to 4 % across the country. The association has sent a memorandum to Finance Minister P Chidambaram listing all their demands.

Source : articles.economictimes.indiatimes.com