The plastics ban in Maharashtra is expected to lead to a GST loss of ₹800 crore, according to the All India Plastics Manufacturers’ Association (AIPMA). The Association has been opposing the ban.

With Maharashtra producing plastic products worth ₹50,000 crore, the ban will mostly affect SME players.

Addressing a press conference, Hiten Bheda, President, AIPMA said, “The MSME and SME segment are have already been impacted by GST and demonetisation and now the ban is expected to cripple their business further. About 2,150 units industrial units may be closed down due to the ban. The banned products alone would be about ₹5,000 crore.”

In Maharashtra, plastics contribute about 35 per cent to the State’s GDP.

“About 60 per cent of the plastics can be recycled, of which 95 per cent comprises PET bottles. We expect the GST revenue from the sales of disposable plastic items which are subject to the ban would amount to ₹800 crore,” he added. In fact, Maharashtra is the only State where there is ban on PET bottles below 500 ml.

The AIPMA claimed the industry employed about 4 lakh people in the State.

“The plastics industry is becoming increasingly important for facilitating sound infrastructure in a sustainable manner. The sector has huge unrealised potential, which will remain unexplored if the ban were to be imposed. The government and the plastics industry should come together instead and tackle waste management in the State,” he added.