Page 8 - Plastics News April 2020

industry has suffered lost orders and lot of annual/ monthly/ quarterly returns under all labor
recoveries held up due to the Covid-19. laws, maintenance of registers or records for a
certain time period.
Ø To recover from the crisis, a special incentive
package be declared which should allow lower Ø Employee share of ESIC not to be paid by the
import duties for raw materials and food and companies but to be borne by the government for a
Pharma related products. period of 5-6 months.
Immediate measures to improve cash-flow situation Ø Contribution to PF & ESI funds- In the light of the
cash flow crunch being faced by the industries, the
Ø Interest subvention of 4-5% on all payments of at government should contribute Provident Fund (PF)
least working capital loans.
and Employee State Insurance (ESI) components of
Ø Waive-off or impose a lower rate of interest as a the salaries of employees for at least 3 months.
one-time measure for the micro, small and medium Ø Employees State Insurance Corporation (ESIC)
sized entities.
should pick up loss of wages of non-working staff
Ø Imposing a lower interest rate (say 6%) could resolve due to close of operations caused by medical COVID
the issue of delay in tax-payments. -19 emergency instead of MSME having to pay with
no work being received.
Ø Defer payments of import duty for all plastic
importers who usually import from the affected Promote exports and Ease of doing business forMSMEs
South-Asian, European, Middle-eastern and Ø The government should incentivize industry by
American states such as China, Vietnam, Korea, UAE providing concessional credit, relaxed regulations
etc.
for exports and tax simplifications (especially GST)
Ø Import demurrage charges may be waived till July for units focused on exports.
2020, as payments from the other parties would not Ø To help exporters from rising cost of logistics, duty
be received on time. This will allow firms to deal free scrips or any other form of benefits of at least
with liquidity crisis in a more sustainable manner.
2% to 3% of exports should be immediately provided
Ø Easy and quick disbursal of pending dues for in a WTO compliant fashion. This should be in
companies (MSMEs) from the government addition to the current benefits.
departments and Public-sector Utilities (PSUs). The Ø Ensure free movement of goods in containers
working capital of businesses are unduly stressed by through India's container ports and also to and from
the dues to the business pending with government the ports hinterlands. The Commissioners should be
authorities/departments. Be it accumulated GST
instructed to ensure smooth and speedy clearances
balances or subsidies pending with the State.
of cargo.
Immediate rate reduction measures to provide relief Ø Facilitate faster Express (Courier) clearances,
to general public
which handle time sensitive shipments and
Ø Removes GST rates on plastics packaging products documents. The Express Industry operates largely
for packing essential commodities such as food and via Freighters (Cargo aircraft). Hence these
milk. aircrafts can land in the country with valuable
Imports and also support the export of goods from
Ø Lower import duties on certain products such as India.
medicines, medical equipment and products for
maintaining hygiene and health. Ø Customs to ensure that that people are provided
with necessary protective material so that all their
Relaxation / dispensation of labour law compliances employees work fearlessly.

Ø Relax compliances in relation to payment of Provide flexibility to use CSR funds
o v e r t i m e , s t a t u t o r y b o n u s , m a t e r n i t y
benefit/bonus, provision of crèche facilities, and Ø Corporates may be allowed to use CSR funds for
compliance with working hours. These procedural providing relief of any kind to the workers in the
relaxations will enable businesses to give basic ongoing COVID -19 circumstances. For instance, it
salaries and emoluments as directed by the may be used for paying for insurance of contract
government. staff / construction workers.

Ø Flexibility in following compliances like filing of Ø This would instill confidence within such workers

APRIL 2020 5 Plastics News