Business

Plastics sector seeks cut in customs duty

The All India Plastics Manufacturers Association (AIPMA), representing 22,000 industrial units, has called for immediate steps by the Union Government to revive the industry and put it back on the growth path.

The industry body, in its meeting here, demanded restructuring of customs duties, anti-dumping duty on import of cheap finished products, review of foreign trade agreements, enforcement of mandatory BIS standards and availability of the technology upgradation fund for industry, among other things.

Jagat Killawala, president, AIPMA, said for the short- and long-term growth of the plastics processing industry, all plastic industry associations had unanimously asked the government to not succumb to pressure ‘from any quarter’ to increase customs duty on key raw material.

“The industry demands that customs duty on PVC should be brought down from 10% to 7.5%, as nearly half of the demand in India is being met through imports due to lack of domestic capacity. Any increase in customs duty will affect the agriculture sector due to [its] high use of PVC pipes and fittings,” Mr. Killawala said.

He said custom duty on polypropylene and polyethylene should be retained at 7.5%. If increased, it would have an adverse effect on automotive and healthcare segments and would lead to cost increases in the value chain.

“Increasing tariff for PET will affect the processing and consumer segment, and thus, tariff for PET should be retained at 5% to nurture consumption of consumer products,” he said.

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Printable version | Feb 17, 2020 4:27:14 PM | https://www.thehindu.com/business/plastics-sector-seeks-cut-in-customs-duty/article30307603.ece

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