The growth potential of India’s polymer and petrochemical industry has not completely materialized largely due to the high excise duty rate on petrochemicals. To boost petrochem consumption to partially/fully offset the loss in revenue from excise duty, the industry has a few expectations that include:
Import duty on two basic feedstocks naphtha and propane be reduced from 5% to nil.
Import duty on polymers, chemicals and fibre intermediates be rationalised and increased to 10% from current 5%.
Excise duty on naphtha to be brought down to 8% from current 16% and maintain excise duty on polymer at 8%.
Customs duty on capital goods imported by Petrochemicals sector be made 'nil' and the customs duty on catalysts imported for use in manufacture of petrochemicals (like EDC, VCM and Styrene) be made 'nil'.