Announcing the customs duty cut on plastic, Sitharaman said the levies are being cut on raw materials and intermediaries where the import dependence is high. This will result in reduction of cost of final products.
To lower the cost of domestic production of plastic products, import duty on naphtha, a Hydrocarbon which goes into production of a host of petrochemicals with commercial and industrial application has been lowered from 2.5% to 1%. The import duty on propylene oxide, used in making items like foams in furniture, has been halved to 2.5%. The import duty on polymers of venyl chloride has been lowered from 10% to 7.5%, showed the order.
Separately, the government is also taking steps to improve the availability of cement. This is being done through better logistics to reduce the cost of cement. Sitharaman had expressed concern at the possible impact the rising cost of construction inputs can have on infrastructure creation at a time the government is pursuing an infrastructure-investment led economic recovery.
“Measures are afoot to improve the availability and price of cement, through better logistics. Despite the challenging international situation, we’ve ensured that there are no shortages/scarcity of essential goods. Even a few developed countries couldn’t escape some shortages/disruptions. We are committed to ensure that prices of essential items are kept under control,” she said, while announcing the measures.
