Page 9 - Plastics News February 2019

FROM THE EDITOR'S PEN

The Boost to Plasticulture

The Finance Minister Piyush Goyal presented his interim budget early this month giving
the much needed boost to the economy and in affect Plasticulture. As per the Budget
announcement, individuals with income up to INR 5 lakhs will not have to pay any income
tax. FM mentioned that individuals with gross income up to INR 6.5 lakh will not need to pay
any tax if they make investments in provident funds and prescribed equities.TDS thresholds
for interests on post office and bank deposits have been raised from Rs 10,000 to Rs 40,000.
This would result in higher interest credits, a part of which was getting locked on account
of TDS, to be subsequently claimed as refunds by the taxpayers falling under the exemption
thresholds.
The new proposal is most beneficial for the lower and middle income group – and is estimated
to put 3 crore tax payers out of the tax bracket. The increased disposable income would
increase consumption and encourage investments as well. Salaried employees with annual
income of up to Rs 10 lakh can reduce net tax liability to zero. While this is being offered
as a tax rebate, not as change in tax slab, the reduction is still significant. Those with
income between Rs 5 lakh and Rs 10 lakh will strive to increase deductions via instruments
that qualify under the various deductions. Tax saving instruments like ELSS, life insurance, Mr. Rajiv B.Tolat
voluntary PF & PPF, small savings schemes should witness increasing flows. This would also
help to maximize wealth creation opportunities and investement.

With the higher budgetary allocation under MNREGA, proposed spends on rural road network,
increased interest subvention scheme for distressed farmers and the modest farm support
scheme offering income support for marginal farmers, the Budget ticks all the right boxes
when it comes to fueling the rural and agrarian economy. The minister also announced a
social security coverage for workers in the unorganised sector, providing them an assured
monthly pension of Rs3,000, besides an increase in tax-free gratuity limit.

These are certainly steps in the right direction and would go a long way in improving their
quality of life and also boost consumption by putting more money in their pockets.

Plastics is playing an important role in agri business as Plasticulture applications offer a
multitude of benefits and are considered most important indirect agricultural inputs. In 2018-
19, Government of India is targeting foodgrain production of 285.2 million tonnes. Between
Apr-Oct 2018 agriculture exports were US$ 21.61 billion. Plasticulture essentially stresses
on the use of plastics in agriculture, horticulture, water management, food grains storage
and related areas. The new policy aims to increase India’s agricultural exports to US$ 60
billion by 2022 and US$ 100 billion in the next few years with a stable trade policy regime.
To achieve this target a multitude of plastic materials may be employed in plasticulture
applications such as water conservation, irrigation efficiency, crop protection, including
farm output practices like crop storage and transportation. Plasticulture culture is a norm
than exception and with the interim budget focusing on agro economy the Plasticulture is
all bound to grow further.

Rajiv B.Tolat
Hon. Editor
publication@aipma.net

9 Februar y 2019 Plastics News