Finance Minister Nirmala Sitharaman
The production of electronic products in the country has reached a value of 115 billion dollars, while the export of mobile phones has reached 15 billion dollars. In such a situation, according to the Cellular Electronics Industry Association ICEA, the government will have to make a large cut in duty rates in the next budget to continue this growth. ICEA, the electronics industry association, has submitted its demands on the budget to the government.
Over the past five years, manufacturing in the electronics sector has increased rapidly in the country due to the Production Linkage Incentive Scheme (PLI). Its exports have also reached $29 billion. The industry wants the government to take several measures in the budget to promote it.
All types of tariffs should be reduced to zero.
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The ICEA has demanded that duties of all kinds on assemblies of all kinds of electronic components be reduced to zero. There are currently 7 types of charges in the production of mobile phones, these should be simplified and only four types of charges should be retained. Duties on PCBA should be reduced from 20% to 15%. Duty on charger, microphone and receiver should be reduced from 15% to 10%. Duties on PCBA parts, connectors and camera modules should be completely eliminated. According to the industry, this will not cause any loss to the government in any way.
Rs 45 billion incentive
According to ICEA Chairman Pankaj Mahendru, the government will have to give incentives of around Rs 45,000 crore over the next 5-8 years. According to the industry, the tax on smartphones on entry in India is 7.4% higher than that in China and 0.7% higher than that in Vietnam. The government can promote the industry by reducing them. The new government will present the budget this month. However, the date of the budget has not been officially announced yet. The budget is expected to come on July 22. This is the first full budget after the formation of the government. Therefore, all sectors are putting forward their demands before the government.
