Plastics units appeal for sops

Due to diminishing demand in the Rs 25,000 crore plastic processing industry, many industrial units in this segment will become non-performing assets and will face at least 40% to 50% of job losses. This was stated by the members of All India Plastics Manufacturers’ Association (AIPMA) while addressing a conference titled `Global Economic crisis affecting plastic industry’,held here.

While addressing the conference, AIPMA appealed to the finance ministry, commerce ministry and the parent ministry of plastics industry to consider and approve various demands which will save the industry from losses.It includes among other encouraging imports of raw material and finished goods of plastics as they are cheaper. Also, reducing excise duties from 14% to 8% on polymers and articles of plastic is imperative so that investments by domestic players come down.

According to Kailash Murarka, president, AIPMA, “The Chinese government provides 9% subsidy to exporters of plastics from China to other countries.

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Deadlock may delay Central Sales Tax phase out

In a fresh set back to the phase-out of the central sales tax (CST),the Centre and states have once again been unable to work out an adequate and agreeable compensation package for the planned 1% cut in the tax. The reduction in the CST rate was originally slated to be notified from April 1, 2008, as had been announced in this year's Budget and would have brought it down from 3% to 2%.

The stalemate has come up despite the empowered committee in its meeting earlier this month re-iterating its promise to reduce the rate of CST from 3% to 2%. Sources close to the development said the phase out process of the tax may now in fact get temporarily postponed, if a compromise is not worked out soon enough.

"While this would not be an ideal situation,and we hope that things get back on track, we can not completely rule out a delay in the phase out of CST,"an official source said.

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