Budget 2021: Naphtha custom duty lowered will help production of plastic raw materials

New Delhi, February 1, 2021: Arvind Goenka, Chairman, The Plastics Export Promotion Council (PLEXCONCIL), said that Naphtha custom duty lowered will help the production of plastic raw materials.

“The Union Finance Minister (FM) presented a progressive and transparent Budget to stimulate growth in the economy after a global pandemic. FM stated that our manufacturing sector has to grow in double digits on a sustained basis to achieve a USD 5 trillion economy. Government has to encourage plastics’ manufacturing companies to become an integral part of global supply chains, possess core competence and cutting-edge technology.

But PLEXCONCIL has been seeking the inclusion of plastics under the PLI Scheme. We welcome the review of 400 existing custom exemptions this year. PLEXCONCIL requests for reduction in customs duty on Plastic raw materials. Naphtha custom duty lowered will help production of plastic raw materials. Finished goods of plastics should have attracted higher duties. We welcome the announcement to review invertecross-subsidyure under GST.

But there is no allocation for MEIS shipments made for 2019-20 and 2020-21 – we seek clarity on the same.The increased focus on providing alternative discoms and reduction in cross subsidy shall help industrial consumers. MSMEs in the plastics industry will benefit from Collateral free loans for businesses. Increased outlay for road and rail infrastructure shall help logistics movement within the country/ICD.”