15 May 2013 12:34 [Source: ICIS news]
SINGAPORE (ICIS)--The Organisation of Plastics Processors of India (OPPI) wrote to the Indian government late on Tuesday to request the withdrawal of a 2.5 percentage point increase in duties on imports of all polymers to 7.5%.
The government's decision to increase the import duty on plastics was in response to calls from industry groups to revise the country's duty structure to protect domestic producers from heavy competition from abroad, industry sources said.
However, the OPPI said the government should instead increase duties on plastic goods.
“It is therefore our earnest appeal to you to kindly withdraw the additional 2.5% customs duty levied on plastic polymers and increase the import duty on plastic goods from current 10% to at least 15%,” the statement said.
The OPPI added the import duty increase “will make plastics expensive and uncompetitive as compared to alternate materials”.
“Plastic processors will be seriously affected by the 50% escalation in the customs duty on polymers. It will serve to retard the growth of plastics and create artificial barriers to its wider use”.
The OPPI added the tax increase would be likely to “increase the influx of plastic finished products from Vietnam, China [and] Thailand”, consequently affecting the polymer industry in India.
Additional reporting by Malini Hariharan
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections