PRESIDENTS DESK

From the President’s Desk                               
 

 

Dear Members,

 

The Union Budget for 2019-20 was presented on 5th July 2019.

The proposals pertaining to Plastic Industry in the Union Budget 2019-20 are as given below:-

  1. Customs Duty on following Plastic Products increased from 10% to 15%.
  • HS Codes of Heading 3918 : Floor coverings of plastics, whether or not self- adhesive in rolls or in the form of tiles; wall or ceiling coverings of plastics, as defined in note 9 to chapter 39.
  • 39269091 – Other: of polyurethane foam HS Code.
  • 39269099- Other

 

  1. Basic Customs duty on PVC increased from 7.5% to 10%.

 

  1. Basic Custom Duty on Naphtha falling under 2710 reduced from 5% to 4%.

 

  1. Basic Customs Duty on Ethylene Di- Chloride (EDC) HSN Code 29031500 is reduced from 2% to Nil.

Organization of Plastics Processors of India was the only Association that had asked for  increasing Custom Duty on Plastic Products from 10% to 15% in general and on Floor Coverings of plastics in particular. Thus, it will be observed that the suggestions made by Organization of Plastics Processors in the Pre- Budget Memorandum are normally get incorporated in the Union Budget.

The budget has proposed a significant rejig in basic customs duties to encourage manufacturing in the country. This involves raising customs duties on a number of products, withdrawing exemption from some and lowering rates for others to encourage value addition. 


The aim is to emerge as an attractive investment destination for companies looking to diversify manufacturing operations from China. The move also intends to give some protection to domestic producers. 

 

There are many themes in the Union Budget 2019-20 that resonate with a New India. It’s a budget that puts out the theme for the next 4-6 years about India’s future in the global comity of nations.

 

The Finance Minister, while reiterating GoI’s target of making India a $5 trillion economy by 2024, quite rightly made a strong pitch for investment in the areas of infrastructure and housing, which will spur economic activities and employment. 


Investment in the areas of Infrastructure and Housing will spur investment in the Plastic Industry as well.

 

I look forward to meet all of you at our 35th Annual Meet scheduled on 2nd August 2019 at Taj Santacruz Mumbai.

 

With Best Wishes.

 

Dharmendra Gandhi

President.