Plastic firms oppose higher tariff on resins

Local plastic products manufacturers are opposing a call from local petrochemical companies of a further increase in tariff rates on resins, from 15 percent to 30 percent.

Resins are vital raw materials used by plastic products manufacturers.

"A 30-percent tariff on resins would result in an increase in the prices of plastic products," said Alfred Chan, executive secretary of Philippine Plastic Industry Association (PPIA).

"An increase in tariff rates on resins, would make the downstream plastic industry a captive market of the three local resins producers," he added.

Chan argued that a further tariff rate hike would, in effect, make consumers subsidize the three local resin producers who cannot compete and who are, in turn, trying to deprive local plastics manufacturers of an alternative source of raw materials.

The tariff rates imposed by other neighboring Asian countries, range from 10 percent to 15 percent, Chan said.

He disclosed that Indonesia and Thailand are even planning to bring down their tariff rates on resins to five percent next year.

"Plastic is used not only for industrial purposes like tubes and piping, but also as a packaging material for food products," Chan said.

An increase in tariff rate on resins would adversely affect the manufacture of plastic kitchen products, sacks, crates, films, furniture, fishnet and virtually all plastic products.