Wednesday, 4 March 2015

UNDERSTANDING THE MOOD OF INDIA'S POLYMER INDUSTRY

Friends, Government of India in its budget 2015-16 has proposed an increase in the excise duty on sacks and bags of polymers of ethylene other than for industrial use increased from 12% to 15%. From the budgetary trends it looks that Government is going to be stringent in dealing with plastics as discarded plastics/polymers causing major environmental issues. However, since plastic recycling can provide a sustainable solution to this issue, this survey is to understand the mood of Indian Polymer Industry which still majorly produces plastics other than through recycling of discarded/waste plastics playing around almost everywhere. It is also found that recycling of discarded plastics/polymers is a higher cost driven process and hence lack of interest prevails in the field.

Hence, please provide your valuable feedback for this survey by way of comments.

How will Indian Plastic Industry react if suppose Goverment of India issues a circular stating the following: 

Entities producing plastic products solely and exclusively by recycling the discarded plastic/polymer found in public places in India will be eligible for 100% tax exemption for next 5 years. Further, income generated from plastic granules procured by public infrastructure agencies like Municipal Corporation, PWD Department or approved private infrastructure agencies shall be elligible for deduction even after end of tax holiday. On the other hand, entities producing plastic products without using such recycling process will have to pay additional tax of 10% till further notice. 

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