- Smartphone makers have urged the government to rationalise input tariffs.
- The
India Cellular and Electronics Association has called for reduction of tariffs to three slabs. - This, the body claims, will help
India compete with other countries globally.
The input tariffs, according to the association, puts India at a disadvantage when compared to other countries.
"The high input tariffs are completely incompatible with India's exports ambitions and put us at a massive disadvantage with countries like China, Vietnam, Mexico and Thailand," the ICEA said.
Therefore, ICEA has urged the Finance Ministry to rationalise the tariffs and match the input tariffs being offered by other countries in the next two years.
India currently provides a range of tariffs, including 2.5%, 5%, 10%, 15% and 20%. In addition to this, certain surcharges are also levied on the products.
"This is not only excessive but also results in nuisance tariffs such as those charged at 2.5% which fail to support domestic industry and also create confusion leading to disputes between the importers and custom authorities," the ICEA added.
The body has urged the ministry to do away with the above tariffs and limit them to 0%, 5% and 10%.
“Given the scale of electronics trade, which is close to $100 billion, we request that a senior level panel of two officials, one each from the ministry of finance and Meity be created to regularly provide accurate tariff classification for imports. Well-established principles should be used to reach conclusions,” the association added.
The Indian government’s policies have given a good boost to the country’s
In yet another milestone,$4 in May 2023 crossed the ₹10,000 crore mark, taking the total smartphones exported from India in May 2023 to ₹12,000 crore.
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