Mumbai, Jan 7: The All India Plastics Manufacturers' Association (AIPMA), has demanded 15 per cent reduction in import duty of raw material to 20 per cent. Lower import duty for polymers will help the plastic goods industry to increase exports during the next year.On the other hand, AIPMA wants the import duty on finished plastic goods to remain at 40 per cent. According to AIPMA, experts within the Centre have advocated lowering the import duty to around 15 per cent, thereby doing away with undue protection. Further, Nepal levies only 15 per cent import duty on polymers, while also refunding around 11 per cent back to the exporters there. Thus, the plastic goods exporters in Nepal hardly pays four per cent. ``This low duty helps plastic goods exporters from Nepal, to push their cheap goods in India, thereby hitting our industry hard,'' Mr Mehta said. ``We want a mechanism whereby flooding of plastic goods from Nepal should be stopped. This can be done by imposing 40 per cent import duty on import of plastic goods, especially from Nepal''. According to Mr Mehta ``The high import duty of 35 per cent for polymers adds cost, to the final cost of products aimed at export markets. This has adversely affected the overall growth of exports of plastic goods''.
According to AIPMA, plastics goods export during the current (1999-2000) is unlikely to achieve the targeted figure of $1,075 million. At best it is likely to be around $600 million - some 40 per cent less that the targeted figure. Further, among others following is the list of demands that the AIPMA feels the Centre needs to accede in the forthcoming budget:
1) Uniform rate of sales tax should be implemented by the Centre immediately ie from 1st April, 2001. Value Added Tax (VAT) system will help Indian plastic processing industry to compete and grow.
2) Power rates should be uniform throughout the country, just like diesel and petrol.
3) Proper waste mannagement should be adopted for prosperity and better health of the common man of India.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.