NEW DELHI: The Delhi government on Tuesday urged the Centre to reduce the rate of GST on the alternatives to the banned single-use plastic and their raw materials.
The Central government banned single-use plastic across the country from July 1.
In a letter, Delhi environment minister Gopal Rai informed Union finance minister Nirmala Sitharaman about a recent โPlastic Vikalp Melaโ organised by the Delhi government to encourage startups, companies, and individuals who are involved in manufacturing alternatives to single-use plastics (SUP).
โOne of the major issues submitted by these entities was on account of the high cost of alternatives to SUP items and a higher rate of GST. Hence, users, as well as manufacturers, are facing hurdles to shifting to sustainable alternatives to single-use plastic items,โ he said.
He further wrote, โCurrently, even if the prices are reduced, there remains a basic need to have certain margins for achieving break-even point. Import fees on plastic products fall between 10-20 per cent but on bioplastics and sustainable alternatives, it exceeds 40 per cent. Thereby increasing the purchase cost of alternatives to single-use plastic items.โ
With the pressing need to encourage the switch over to alternatives to single-use plastic items, it is crucial that GST rates on alternatives to single-use plastic items and raw material be reduced, the letter reads.
