The Union Finance Minister Nirmala Sitharaman presented the full – budget 2024 today before the parliament at 11 am. “PVC flex banners are non-biodegradable and hazardous for environment and health. To curb their imports, I propose to raise the BCD on them from 10 to 25 per cent.”, says FM.
PVC (Polyvinyl Chloride) flex banners are widely used in advertising and promotions due to their durability, flexibility, and cost-effectiveness. The reduction in customs duty on PVC flex banners can have several impacts on the market, businesses, and consumers.
A reduction in customs duty will lower the cost of importing PVC flex banners. This can lead to reduced expenses for businesses that rely on these banners for advertising and promotional activities.
Lower costs may encourage more businesses to use PVC flex banners for advertising, leading to increased demand for these products. Reduced customs duty can lead to increased imports of PVC flex banners, boosting trade volumes.
While there might be a short-term reduction in customs revenue, the overall economic activity generated by increased advertising and business growth could offset this loss in the long term.
An increase in the use of PVC flex banners due to lower costs could exacerbate environmental concerns related to the disposal of these non-biodegradable materials. To balance environmental concerns, there might be a need to promote eco-friendly alternatives alongside the reduced duty on PVC flex banners.
The reduction in customs duty on PVC flex banners can have a positive impact on businesses by lowering costs, enhancing competitiveness, and promoting more extensive advertising efforts. Balancing the economic benefits with sustainability initiatives will be crucial for maximizing the positive outcomes of this policy change.
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