The Association also requested the government to take necessary steps to offset the Kraft paper shortage and control the steep increase in the prices of Kraft
: The South Indian Corrugated Box Manufacturers Association on Tuesday urged the Centre to reduce Goods and Services Tax on corrugated boxes to benefit the micro small and medium enterprises sector.
According to the Association, the MSME sector would face various hardship if manufacturers exit due to the heavy losses caused on account of the steep input cost in the manufacturing of corrugated boxes.
The Goods and Services Tax at 18 per cent on corrugated boxes causes financial stress as payment realisation to the MSME sector takes up to 60 days but payment in terms of the duty to the government is 30 days, the association said in a press release.
The Association also requested the government to take necessary steps to offset the Kraft paper shortage and control the steep increase in the prices of Kraft which accounts to 85 per cent of the cost of corrugated boxes.
The packaging industry is witnessing an increasing demand for corrugated boxes and the Kraft paper price grew by 100 per cent, the release said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
First Published: Tue, March 01 2022. 20:06 IST