An association of cardboard box manufacturers has urged the Center to reduce the Goods and Services Tax (GST) levied on these boxes for the benefit of Micro, Small and Medium Enterprises (MSMEs).

The South Indian Corrugated Box Manufacturers Association said on Tuesday that the MSME sector will face difficulties if the manufacturers of cardboard boxes exit the sector due to losses due to steep rise in the cost of raw materials. .

The association said in a press release that the goods and services tax on cardboard boxes is 18 per cent. This causes financial stress as the MSME sector takes up to 60 days to receive the payment but the government has to pay the fee in 30 days.