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Canara Plastic Manufacturers’ and Traders’ Association (CPMTA) has said that the proposed tax rates on plastic products under GST (goods and services tax) will affect the micro, small and medium enterprises (MSMEs) in plastic sector.
BA Nazeer, president of the association, said here on Saturday that 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. He said that these products are likely to become 10 per cent more expensive under GST.
Nazeer said that 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 would affect a very large workforce in MSME sector, he added.
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