With days left for the Union Budget 2018, the consumer durables and home appliance manufacturers have demanded the government to lower tax rates and provide incentives on manufacturing, apart from an increase on customs duty on imports. Apart from that, the Appliances and Consumer Electronic (ACE) industry also want the government to encourage manufacturing of energy-efficient products.
"Consumer appliances as refrigerators, washing machines, and ACs are no longer considered luxury items. Such consumer appliances need to be made more affordable to the consumers and be put in a lower tax bracket from 28 percent to 18 percent," said Godrej Appliances Business Head and EVP Kamal Nandi told PTI.
It has also come to light that these manufacturers are also expecting a tax reduction on the energy efficient 5-star and 4-star products to boost their sales. "There should also be incentives for manufacturers to produce energy-efficient products which will be in line with the government's focus on sustainability as well as its Make in India initiative," Nandi added. Panasonic too has set its expectations for this year's budget and expects the government to hike in the customs duty for ACE products category such as washing machines and refrigerators to encourage local manufacturing.
"With the BCD hiked on items such as smartphones, TVs microwaves and LED lamps, we expect the union government to take similar steps on other durable items as washing machines, and refrigerators to further encourage localized indigenous manufacturing," said Panasonic India and South Asia President and CEO Manish Sharma. Likewise, Philips Lighting India also expressed that customs duty on finished lighting products and luminaries should be raised, similarly to the government's move to raise import duty for LED light bulbs.
"We also welcome the recent increase in customs duty for finished LED bulbs from 10 to 20 percent and hope that the government will extend it to all finished lighting products and Luminaries," said Philips Lighting India Vice Chairman and Managing Director Sumit Joshi.
While, Intex has asked for reduction of GST rates on parts and subparts as battery, shield used in manufacturing of mobile phones to 12 percent from the present 28 percent.
"All parts and subparts which are used in manufacturing of mobile phones should be taxed at 12 percent as similar to GST rates of mobile phone as higher GST rates increases the cost of mobile phones hampering the manufacturing of phones in India," said Intex CFO Rajeev Jain. – Times Now News