India plastics duties on imported materials sought revised
The Indian plastic manufacturers have urged the Center to raise the currently imposed import duty for imported plastic products in order to allow for the survival of the local industry. Under existing free trade agreements signed in India, there is preferential import duties imposed on finished plastic goods that decline over the period.
The All India Plastic Manufacturers Association had urged the Union government to impose higher import duties on all imported plastic products to a base rate of 20%. It also said that the association's plastic processing sector produces 50,000 units, where 90% are in the SME segment. The industry employs over four million individuals. The unfettered importation along with other factors threaten the very survival of the industry.
The plastics manufacturers have indicated the anti-dumping duty on PVC resin is repetitive of India's importation of 60% of its required PVC. Another demand required would be to revise VAT on plastics to 4% from the current 12.5% throughout the country. This and other demands from the association have been forwarded to Indian Finance Minister P Chidambaram.