MCMA demands fiscal incentives to promote eco- friendly packaging

Metal Container Manufactures Association (MCMA) has demanded that the government should provide fiscal incentives to promote Eco friendly packaging. Metal packaging industry is facing serious problem on accumulation of credit due to inverted duty structure and supplies to merchant exporter/manufacturer exporter against Notification 43/2001 dated 26/6/2001, the MCMA said in a Pre Budget Memorandum 2011-12 to the Ministry of Finance.

According to Sanjay Bhatia President MCMA & Managing Director Hindustan Tin works Ltd "We have urged the government to provide fiscal incentives to promote packaging which is environmental friendly, recyclable and sustainable. These incentives can be given in terms of subsidies, refund of indirect taxes, concessional duty on import of capital goods/inputs and income tax exemption"

MCMA (a primary organization that) represents the interests of companies involved in the production of metal containers, packaging and allied components. The issues affecting metal packaging industry are provided below:

- Various food products like mango pulp, process vegetables, coffee etc. which are packed in tin containers are exported out of the country by manufacturers, export houses, traders, merchant exporters etc.

- For can making industry, this results intonon utilization of CENVAT credit.

- Deemed export should be brought at par with physical export for the purposes of refund of excise duty in order to address the issue of CENVAT accumulation with the industry.

- Appropriate fiscal incentives should be considered to promote packaging which is environmental friendly, recyclable and sustainable. These incentives can be given in terms of subsidies, refund of indirect taxes, concessional duty on import of capital goods/inputs and income tax exemption.