But like every year, expectations from Budget 2024 are also high in terms of providing relief to the common man, the middle class, farmers, women and the industry. From income tax slab changes, and new income tax regime tweaks to an increase in standard deduction and Section 80C limits, salaried taxpayers are looking at Budget 2024 to increase tax relief. 

Ahead of the Budget 2024, industry players shared their expectations.

Ashish Pradhan, president, Siegwerk Asia, said, “The current Union Budget necessitates a mindful approach to taxation within the FMCG industry. Despite the current GST rates of 18% or 12% on FMCG items, I hope for a streamlined reduction of all FMCG commodities to 5%, designating them as essential commodities. Such a measure opens up new potential for the whole FMCG value chain and promises a much-needed impetus for industry stakeholders.

Furthermore, Pradhan said, there is a need for tax exemptions for companies engaged in R&D, specifically focused on enhancing customer health and safety. “This strategic incentive has the potential to significantly bolster advancements in these vital domains. Finally, I hope the Union Budget is well-aligned with the hues of sustainability and green growth,” he said.

Pankaj Poddar, group CEO, Cosmo First, said, “India’s packaging industry holds substantial potential to transition into a net exporter. Realising this potential necessitates crucial government support, and we anticipate pertinent announcements in Budget 2024. Considering the valuable contributions and opportunities the sector presents to the market, the implementation of Production-Linked Incentive (PLI) benefits in areas where India is a net importer — such as capacitor films, battery separator films, PEN films, etc — can serve as a transformative force for the industry. Additionally, as India progresses towards the shared objective of Atmanirbhar Bharat, extending the sunset clause on lower tax benefits for new manufacturing entities by two years will incentivise capital expenditure, fostering confidence within the industry.”

He added, “Moreover, the industry urgently requires the establishment of a plastic university equipped with state-of-the-art infrastructure. This will support in creating and bringing fresh talent for the industry, and also attract plastic machinery manufacturers to establish their operations in India. However, challenges persist in the plastic processing industry with Extended Producer Responsibility (EPR), acting as a roadblock. These challenges can be effectively addressed by establishing waste collection, segregation, and recycling infrastructure across all towns, cities, and villages. We anticipate the government’s proactive approach in addressing these issues and providing essential support to the industry in the upcoming budget.”