Page 7 - Plastics News April 2020

COVID-19: Economic Impact on Plastic Industry & Suggestions
AIPMA's recommendations to various ministries on
Economic Policy Measures that can benefit the
companies in the Plastic Sector
In Communication with Government Of India
1. Commerce Secretary, Ministry of Commerce and
Industry
2. Secretary DCPC, Ministry of Chemicals and
Fertilizers
3. Finance Secretary, Ministry of Finance
4. Secretary, Ministry of Micro, Small and Medium
Enterprises
5. Principal Secretary of the Prime Minister of
India
As you are aware, the impact of COVID-19 outbreak has
been widespread – the economic impact, impact on
business operations and our day to day lives. It has
emerged as the biggest concern, crippling economy and
increasing the risk of recession.
With the ongoing health crisis and enormous demand for
medical items, pharma and food products, plastics
industry is proving to be the savior of the planet and
boon to the mankind. However, the plastics industry is
facing enormous existential crisis and challenges due to
on-going global situation and shutdowns.
These are clearly uncertain times, one which require
expeditious redressal measures from the Government of
India- especially on policy, fiscal and monetary front.
However, in order for the plastics industry to stay afloat
and survive the on-going crisis, AIPMA represented the
Plastics Industry and urgently requested Government of
India to take necessary measures with recommendations
and suggestions on the Economic Impact on Plastic
Industry.
Economic policy measures that can benefit companies
in the plastic sector-
KEY ISSUES / RECOMMENDATIONS
Ÿ Introduce policy measures for banking
Ÿ Allow deferred GST payments/ Provide tax reliefs
Ÿ Measures to provide relief to general public
Ÿ Relaxation in Labor Laws & compliances
Ÿ Provide Flexibility to CSR funds
Ÿ Easy Licensing to manufacture protective gear
Ÿ Introduce sustenance packages for impacted
APRIL 2020 4 Plastics News
sector employees in Plastic industry
Ø MSMEs in the plastic industry demand a certain
amount of time period (grace period) from the
Banking sector. The biggest demand due to troubled
times faced at the hands of Covid-19 pandemic,
some payments like interest payable and credit
installments owed to the banks may be delayed.
Routine defaults / delay in retiring LCs, if any, may
be allowed with an extension of 30 days by banks.
Ø The Banks should keep patience and not declare the
micro, small, medium enterprises as Non-
performing assets. Moratorium of interest
payments for the next 6 months is likely to help
companies survive this economic crisis. EMI's to
banks and NBFC to be put on hold for 6 months with
no levy of interest or delayed payment.
Ø Companies should be allowed to retain 10% of the
Goods and Services Tax (GST) payable for the next
12 months. The due date to furnish the GST and
other compliances of all statutory returns, such as
ESI, EPF, TDS including GST returns/payment of
taxes should also be extended to 4 months after the
virus-infection and outbreak subsides as the market
will take time to come back to its normalcy.
Ø Relax compliances including receipt of foreign
remittances during this period. RBI to change
definition of NPA recognition from 90 days to 180
days till September 30.
Ø Extend due date for filing SEIS/MEIS claims for the
period. And also for other schemes offered to MSMEs
like the Cluster Development Scheme, Public
Procurement Scheme, UdyogAadhaar memorandum
and Zero Defect Zero Effect.
Ø Require the 'Grievance Monitoring System' network
offered by the Ministry of MSME to come up with
relevant options of support in this time of dire need.
Ø Credit linked Capital Subsidy Scheme should be
relaxed for companies facing deep financial
distress, as the credit score might be disturbed for
few upcoming months and financial cycle of 2020-
21.
Ø Property tax for the FY 2020-21 to be reduced to
half for all commercial properties.
Ø GST filling for Feb and March 2020 should be
extended until June 2020
Ø No interest should be levied on delayed payments.
Ø Give extended time to make tax payments as