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Govt fails on promised concessions: Polythene industrialists
Polythene Manufacturers and Recyclers Association (PMRA) last week said the Government had failed to give them concessions on the raw materials imported for the manufacture of bio-degradable polythene, as promised in its 2018 Budget.
PMRA President Anura Wijetunge said although the government promised tax concessions on the import of raw materials for the transition from non-degradable to bio-degradable polythene, they have yet to get the relief.
The only concession they have received, he said, is the removal of the Port and Airport Levy (PAL) on Polyactic acid which is used as a combination with corn starch and (PABT) Polyalkylenbridedthiophene in the manufacture of bio-degradable lunch sheets. Nevertheless, they have to pay the NBT (Nation Building Tax) and VAT (Value Added Tax) on the import.
For the other two components, no tax relief has been granted. “We pay the NBT, VAT and PAL on the importation of raw materials,” he said.
This he said adds to the cost of a lunch sheet which is sold at Rs 2.50 per sheet at present.
On the production of polyethylene bags, he said most PMRA members have modified their machines. “About 100 members have effected the transformation and submitted the related cost to the Ministry of Industry and Commerce,” he said.
The Government promised to reimburse 50% of the cost of modification to those who complied with the Government’s request to manufacture the High Density Polyethylene (HPDE) bags with a gauge of over 20 microns.
The cost of modification per machine is around Rs 400,000, and the Government has promised to pay for up to 5 machines per manufacturer.
Mr Wijetunge said the members have complied with the Central Environment Authority’s (CEA) request and await CEA inspection.
Meanwhile, the CEA continues with its raids on polythene manufacturing industries to ensure compliance.
CEA Solid Waste Management Director Ajith Weerasundera said that, of the 12 industries checked in Colombo, 3 medium scale companies, not registered with the CEA, were found violating the law by continuing to manufacture HDPE lunch sheets and shopping bags.
Around 600 trained CEA officers and environmental police are conducting raids islandwide to ensure compliance in the manufacture of biodegradable lunch sheets and low density polyethylene shopping bags in the market.