Page 58 - Plastics News December 2022

IN THE NEWS

2021-22 as against US$3.34 billion trillion before the turn of this decade, mala Sitharaman, out of total plastics
during the last year. India’s plastic industry size and export imports (value-added and polymers)
are bound to reach its target. to value of US$14.6 billion in 2020-21,
Mediocre performance items imported under the category of
Budget recommendations
India’s plastic is estimated to be worth over 10 percent duty valued US$0.93
US$40 billion, a mere 5 percent of the To achieve this scale, however, the billion.
US$700 billion world plastic market. government needs to support the in- “Hence, if import duty on all plastic
Despite contributing to around 20 dustry with enabling policy support. finished goods is raised to 20 percent,
percent of the world population, India Last year, the government cut import it will generate huge employment in
has market share in the world plastic duty on polyvinyl chloride (PVC) by the plastic processing sector, in ad-
markets remained negligible, thanks 2.5 percent to 7.5 percent after the dition to raising customs revenue on
to the unfavourable government poli- Union Budget. Encouraged by this imports. Also, it will raise more de-
cies that categorized the plastic pro- decision, India’s value-added plastic mand for polymers within the country
cessing industry as the most violator products manufacturers have urged thereby attracting huge foreign di-
of environmental laws. The govern- the government to double the import rect investment (FDI) and help boost
ment of India is yet to promote the duty on value-added products. polymer production capacity and add
manufacturing skills, artisans and to India’s gross domestic product
craftsmanship for the country’s plastic “Presently, a 10 percent import duty is (GDP),” said the note.
industry to make a recognizable mark applicable on value-added plastic im-
in the world. port which needs to be increased to Additionally, profits earned by com-
20 percent. A select few plastic items panies are taxed in companies. Once
But now, the Indian government has do attract higher duty of 15 percent taxed, these profits reach the hands
promised all possible help to the but such goods are majorly imported of shareholders by way of dividends.
plastic industry, including favourable from countries with whom India has As per current income tax provi-
policy support. With this, the govern- signed Free Trade Agreement (FTA) sions, such dividend is also taxed for
ment aims for India’s plastic industry and importers actually pay negligible shareholders, despite applicable tax
to achieve US$100 billion in the next or ‘nil’ duties,” said Goenka. deducted on the same by companies
four-five years with the export target earlier.
set at US$25 billion by the financial According to a pre-Budget recom-
year 2025. With India’s gross domes- mendation note sent by the industry
tic product (GDP) set to achieve US$5 to India’s Union Finance Minister Nir-

European commission adopts rules on packaging and bioplastics

moting biobased content equally to compostable plastic packaging in the
recycled content through targets to proposed packaging rules in reaching
help secure feedstock availability, to the ambitious waste and climate tar-
achieve recycled content targets, ac- gets. However, we would have ex-
cording to EUBP. pected stronger support for the use
of biobased feedstock”.
Hasso von Pogrell, Managing Direc-
tor of EUBP said: “We appreciate von Pogrell added: “We are espe-
uropean Bioplastics (EUBP) has the Commission’s first comprehen- cially relieved to see that an initially
Ewelcomed proposed rules on sive policy framework on innovative proposed partial ban on compostable
packaging and bioplastics adopted by bioplastic materials, acknowledging plastic packaging was eventually lifted
the European Commission. their potential to provide genuine and compostable packaging solutions
environmental benefits. The EUBP will continue to be allowed to be mar-
The Commission’s proposal for a
Regulation on Packaging and Packag- commends the Commission’s en- keted and recycled in the EU”, says
dorsement of the important role of von Pogrell. The Commission’s pro-
ing Waste (PPWR) falls short on pro-

58 PLASTICS NEWS December 2022