New Delhi, Jan 26 () Manufacturers of appliances and consumer electronics are seeking lower taxes on eco-friendly and energy-efficient products, more incentives for domestic manufacturing and waiving of customs duty on inputs imported to make the components in the upcoming Union Budget.
The Consumer Electronics and Appliances Manufacturers Association (CEAMA) has urged the government to offer incentives for manufacturers to produce energy-efficient products which will be in line with the government's focus on sustainability in a pre-budget memorandum. 
"Lowering the GST tax slabs for eco-friendly and energy-efficient products like air conditioners (4 star, 5 star models) and refrigerators (direct cool and frost-free) to 12 per cent will drive demand and increase the adoption of sustainable appliances by Indian consumers," said CEAMA President Kamal Nandi.
"The upcoming budget should additionally offer incentives for manufacturers to produce these energy-efficient products which will be in line with the governments focus on sustainability," he said.
Finance Minister Nirmala Sitharaman is scheduled to present the Budget for financial year 2020-21 on February 1.
According to CEAMA, the industry has largely been stagnant this year and with increased customs duties, global economic changes and fluctuations in currency and commodity, the demand levels for next year are difficult to predict.
Indian component suppliers are facing difficulty in competing with cheap Chinese imports, it said.
"The government should consider initiating some measures to reduce the input cost to make these components by waiving duty on the inputs imported to make the components," said Nandi, who is also Godrej Appliances Business Head &amp; Executive vice president.
"Besides this, the government should also focus on the promotion of R&amp;D and incentivisation of local manufacturing. The government should reinstate the reimbursement of R&amp;D expenses to 200 per cent," he said adding that 
"additionally, any expenditure incurred for taking professional help in aesthetic designing, prototyping, electronic controls designing etc should also be allowed as R&amp;D expenditures." 
Panasonic India and South Asia President and CEO Manish Sharma expects reforms in the union budget, saying that would drive consumption and improve the consumer demand.
"In order to realise the 'Make in India' vision, it is essential for the government to reduce basic customs duty on parts used in manufacturing of key components such as Motors and PCB which currently ranges from 7.5 -10 per cent. To give a perspective, reduction in custom duty on these parts, used in manufacture of PCB and motors which are further used for manufacturing Washing Machine, Refrigerator and AC will reduce input cost, allowing Indian manufacturers to be far more competitive," he said.
BSH Home Appliances India Managing Director and CEO Neeraj Bahl said Union Budget 2020 will focus of regaining consumer confidence, by reduction of personal tax, which in turn will help boost consumer demand and help the industry, which had witnessed a flat growth last year.
"We urge the government to bring in constructive policies to lend support and drive growth in the sector," he said adding that "the government should also consider reduction in GST rates for products like refrigerators and air conditioners, which are now evolving from being luxuries to necessities for our consumers".
Usha International CEO Dinesh Chhabra: "One of the key measures in the sector could be reduction of GST rates on electronic components and rationalization of the slabs for various categories of products. GST rate cuts on components would provide manufacturers with an incentive to expand production." KRH MKJ

Appliances, consumer electronics industry seeks tax relief, incentives in upcoming Budget

<img class="gwt-Image" src="/photo/56914616.cms" /> Once the <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2017+&amp;sortorder=effectivedate">Budget 2017 </a>is implemented, prices of mobilephones will shoot up by nearly 1%. This move comes after the government proposed to impose <a href="http://www.businessinsider.in/searchresult.cms?query=customs+duty&amp;sortorder=effectivedate">customs duty</a> on a component that makes up about 25-30% of the cost of making a phone. 
 
The component is a populated printed circuit boards (PCB) used for mobile phones and the government has proposed to impose a 2% special additional duty on it as these are imported into the country. The move comes along in order to 'provide adequate protection to domestic industry', the government said, which will benefit local manufacturers of PCBs. 
 
"This is aimed at incentivizing manufacturing of PCB locally, which is major step towards bringing value addition to India. This can lead to marginal cost increase (less than 1%) on mobile phones that use imported PCBs,” said Bipin Sapra, an indirect tax expert at EY.

Brace up! Your mobilephone is going to become expensive

<img class="gwt-Image" src="/photo/51330153.cms" style="width: 800px; height: 600px;" /> 
In an unexpected twist of events, the <a href="http://www.businessinsider.in/searchresult.cms?query=ICC">ICC</a> has announced they'll shift the March 19 World Twenty20 match from Dharmshala to Kolkata at the last minute due to 'security concerns'. 
 
On Tuesday evening, Pakistan had earlier asked the <a href="http://www.businessinsider.in/searchresult.cms?query=ICC">International Cricket Council</a> (ICC) and the <a href="http://www.businessinsider.in/searchresult.cms?query=Board+of+Control+for+Cricket+in+India">Board of Control for Cricket in India</a> (<keyword id="6354756" type="CITY" weightage="100" keywordseo="BCCI">BCCI</keyword>) to shift the match. 
	<a href="http://www.businessinsider.in/searchresult.cms?query=David+Richardson">David Richardson</a>, CEO, <a href="http://www.businessinsider.in/searchresult.cms?query=ICC">ICC</a> said, "It's unprecedented and unfortunate that these concerns were raised by the government in recent times. Its too early for us to consider disciplinary action against the State association."
Dharamshala Ground<img class="gwt-Image" src="/photo/51330224.cms" style="width: 800px; height: 600px;" /> 
Kolkata Ground<img class="gwt-Image" src="/photo/51330201.cms" style="width: 800px; height: 600px;" /> The departure of the Pakistan team for India for the WT20 has also been put on hold by the <keyword id="43712" type="ORGANIZATION" weightage="100" keywordseo="Pakistan-Cricket-Board">Pakistan Cricket Board</keyword> (PCB). Richardson said they'll try and convince PCB to ask the Pakistan to Kolkata. He said the ICC will leave no stone unturned to convince India's safe.

ICC shifts World T20 match from Dharmshala to Kolkata

<img class="gwt-Image" src="/photo/47800085.cms" /> 
Madhya Pradesh has turned on the business mode. In a news report by The Economic Times, Chief Minister Shivraj Singh Chouhan while addressing a meeting of Investment Promotion Committee at Mantralaya has proposed to will establish Investment Promotion Desk in the East Asian nations with an aim to facilitate investment from those countries. 
 
Chouhan asked the authorities concerned to chalk out detailed plans to encourage investments from the East Asian countries. 
 
He said the prospective investors and their associations or bodies must be apprised of the initiatives taken under the ease of doing business in the state. They should be informed about single-door policy. 
 
On the occasion, secretary to Chief Minister, Hariranjan Rao, informed that Taiwan and other east Asian countries are exploring investment opportunities in India, specially in potential destinations like Madhya Pradesh. 
 
The policy initiatives specially in Electronics Manufacturing are attracting them. Country's first Printed Circuit Board (PCB) cluster for electronic products is coming up at Gwalior. 
 
Suggestions about setting up of centres for learning Chinese, translating Industrial policies into Chinese and Oriental Culture Centre were also given at the meeting, he said. 
 
The news report further suggests, the policy for promotion of micro, small and medium industries was endorsed at the meeting. The proposed policy talks about giving capital subsidy for micro, small and medium industries, compensating the infrastructure expenses and exempting them from various taxes and fees. 
 
Minister for Commerce and Industries Yashodhara Raje Scindia, Minister for Public Relations Rajendra Shukla and Minister for Transport and Science and Technology Bhupendra Singh, among others attended the meeting. 
 
(Image: Thinkstock)

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