Budget cuts duties on polymers for plastics industryExcise on retail plastics bags up from 12 to 15%The India central government budget 2015-16 has reduced the basic customs duty on isoprene and liquefied butane from 5 to 2.5%, while the basic customs duty on ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer is reduced from 2.5 to 2%. The basic customs duty on butyl acrylate is reduced from 7.5 to 5%. Moreover, the budget special additional duty on naphtha, EDC, VCM and styrene monomer for manufacture of excisable goods is reduced from 4 to 2%.The budget proposals are directed at reversing the inverted duty on plastic products and expected to improve competitivenessThe budget proposals are directed at reversing the inverted duty on plastic products and expected to improve competitiveness. Investment and capacity addition in the downstream petrochemicals sector for plastic product manufacture can be expected. However, the finance minister Arun Jaitley has proposed an increase in excise on plastic bags (other than those for industrial use) from 12 to 15%.
