India’s massive tax reform program for goods and services is considered a way to unify the country’s internal market and taxation system.
Starting in mid-2017, a new VAT project will be launched. This will be positive in the long run and will make it easier to invest in India. However, as industry associations promote the classification of plastic products and equipment and lower tax rates. Their efforts have been increasing.
The Plastics Industry Association objected that some of their plastic products were set at a tax rate of 28% and 18%. For example, the company stated that some plastic products used on packaging have higher taxes than glass, taxes on wood and tin packaging These products were set at a 12% tax level. At the opening ceremony held on February 7, the head of the National Advisory Board of the India Plastique Foundation expressed his concerns and urged the government to further revise it.
'The VAT committee should consider lowering the tax rate for the industry because the 18% tax is too high.'
The Chairman of the Indian Foundation said that representatives of the industry have already met with government officials, but more needs to be done. Stakeholders should actively seek to reduce the tax rate to 12%. However, he and other business leaders stated that they believe that with Over time, the VAT system will help China's development and increase the country's per capita plastic product consumption.
Consumption tax is levied on goods and services. The president of extrusion machinery supplier Rajoo Co., Ltd. said: 'The complexity of taxation departments at all levels and the handling of sales and taxation issues all end with the introduction of VAT.'
The consulting firm stated: 'The impact of the Indian Goods and Services Tax will be more pronounced in 2018. With the implementation of VAT, inland logistics may be more efficient, which will bring more expansion and new investment in plastic manufacturing facilities. ''Value-added tax is good for this country, but the implementation is uneven, the value-added tax specification is not clear, and their interpretation has caused confusion. 'The executives said that it is sometimes difficult to understand how the product was identified to various taxes. At the same time, some plastic equipment is affixed to the luxury tax rate of 28%. It is difficult to understand. The industry argues that improper classification will hurt thousands of small and medium-sized plastic manufacturers, and at the same time it will increase the The price of plastic products used by the poor in the country.
The Mumbai-based Plastics India Foundation believes that small businesses are most likely to be affected by rising VAT rates. The company said that over 95% of the 50,000 companies in the Indian plastics industry are SMEs.
In general, the business group stated that VAT will eventually lead to greater efficiency, including online submission of registrations, returns and refund requests. Supporters of VAT said that this will bring greater transparency and help Curb tax evasion.
The head of the Indian plant of Milacron Holdings Ltd., a US equipment manufacturer, said that he saw a positive side. 'The change is good for all of us, because VAT simplifies the buying and selling process.'