Indian Budget 2019 highlights for the plastics industry

09-Jul-19

In the Indian budget 2019, no change has been made in personal income tax rates. However, surcharge has been increased for those earning 2-5 crore and those earning 5 crore and above. The effective tax rate for these categories will increase by around 3% and 7%, respectively. Increase in cess on fuel by 1 rupee, making petrol & diesel costlier; and likely to hike cost of transport. Customs duty on gold and precious items increased. To discourage the practice of making business payments in cash the government proposes to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account. PAN Card to become interchangeable with Aadhar, so that Aadhaar can be used for verification with no requirement for PAN. Ensuring farmers access to safe and adequate water is another important initiative the government will work towards.

Customs Duty on following Plastic Products increased from 10% to 15%.
* HS Codes of Heading 3918 : Floor coverings of plastics, whether or not self- adhesive in rolls or in the form of tiles; wall or ceiling coverings of plastics, as defined in note 9 to chapter 39.
* 39269091 – Other: of polyurethane foam HS Code, and
* 39269099- Other

Basic Customs duty on PVC increased from 7.5% to 10%. Basic Custom Duty on Naphtha falling under 2710 reduced from 5% to 4%. Basic Customs Duty on Ethylene Di- Chloride (EDC) HSN Code 29031500 is reduced from 2% to Nil.