Kolkata, Jan 11 (PTI) The new taxation regime under Goods and Services Tax (GST) is all set to boost polymer downstream industry in the eastern region, including West Bengal.

"In the GST regime, abolition of CST and entry tax and on top of that plastics goods flowing in from other states evading taxes have now stopped. This will encourage local manufacturers from Bengal to produce more to meet the demand," Indian Plastics Federation president Alok Tibrewala told PTI.

West Bengal plastics industry is pegged at ₹ 12,000 crore involving 2500-3000 units and growing at 15 per cent annually.

Tibrewala said the any new industrial policy for petrochem downstream industry at the Bengal Global Business Summit 2018 will create more vibrancy in the investment environment in this sector of the state.

They expect inclusion of expansion in the incentive scheme and direct payment of capital subsidy, Tibrewala said.

IPF officials said the state government must look at 'affordable power' for the plastics industry to encourage more manufacturing in this state.

Meanwhile, IPF was looking for some 100 acres land for a new plastics park exclusively for the MSME plastic sector within 50-60 kilometres from city limits.

"In the next one year, ₹ 800-1000 crore investment will come. Demand for 60 acres is already there before we can finalise land for a new plastics park," Tibrewala said.

Speaking on 'Indplas 18' in Kolkata, the IPF said 120-125 foreign delegates are expected in this mega event from countries like China, Thalinad, Taiwan, Malaysia and UAE among others beside companies across the country.

The triennial exhibition will take place from November 30 to December 3.

Goods and Services Tax reform boosts polymer downstream production; incentives and infrastructure urged to attract investment Goods and Services Tax reform eliminates the Central Sales Tax and entry tax that had enabled tax evasion, thereby encouraging West Bengal polymer downstream manufacturers to increase local production. Industry stakeholders urge state policy to expand incentives and provide direct capital subsidy, ensure affordable power, and allocate land for a dedicated plastics park for MSMEs to attract near term investment and translate GST advantages into expanded manufacturing capacity.