It is a welcome gesture by the Finance Minister to reduce Import Duty on Commodity Plastics from 10% to 5%. This will help for stability of local polymers prices. This reduction of Customs Duty should have been extended to all other polymers most of which are imported.
The burden of SAD @ 4% will be additional burden. However, there is some relief as the same is Centavable.
Industry was eagerly awaiting reduction in the rate of Excise duty and is very disappointed as no reduction of duty has been announced. The production of plastic is expected to increase from 40 lakh tonnes to 120 lakh tonnes. Reduction in excise duty would have helped in boosting production.
Finance Minister in his budget speech has acknowledged the reduction / rationalization has always improved revenue collection.
02-Mar-06 
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