Canara Plastic Manufacturers Association (CPMTA) has expressed its disappointment at the proposed Goods and Service Tax (GST) rates of 18% and 28% for plastic products.
B A Nazeer, President, CPMTA, said, "The proposed GST rates of 18 per cent and 28 per cent for plastic products will be a big blow to the plastic industry."
Most plastic products are being sold with value-added tax (VAT) ranging from 5 per cent to 14.5 per cent. These products will attract GST rates of 18 per cent and 28 per cent.
Nazeer said that these products are likely to become 10 per cent more expensive under GST.
He said, "Plastic industry runs on very thin margin due to the competitive market, largely because of cheap imports from China. GST rates of 18 per cent and 28 per cent on plastic products will force small manufacturers to close their manufacturing activities. This in turn will result in very large number of workforce being rendered unemployed."