Lower taxes, more R&D will stabilize consumer electronics sector, say players, Retail News, ET Retail

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The government should consider lowering the tax rate on consumer electronics and ensuring a stable tax bracket on the GST in the Union Budget 2022-23, as this would encourage consumers to purchase products. higher ASP (average point of sale) and would stabilize the pandemic-stricken sector, industry players said ahead of the Union Budget 2022-23.

Emphasizing that the industry needs a stable GST tax bracket to boost the local manufacturing and MSME sectors, Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd (SPPL), Trademark Licensee Kodak said electronics should not exceed the 18% bracket. .

“India may become the world’s third-largest market for televisions, leading to an estimated 15% growth in market size, reaching up to 16 million units per year. We would like to urge the government not to change the rights tariffs as the industry moves towards a stable state,” he said.

The India Cellular & Electronics Association (ICEA) has also recommended a reduction in the GST rate on color TVs, which at 28% for TVs over 32 inches (and 18% otherwise), is inexplicably high.

“We emphasize that the 43” model is now considered the average for the Indian market. We recommend the standard 18% GST rate for all TVs. A huge gray market has formed. Any loss of revenue will be greater than offset by increased production, sales and reduced gray market,” he said in a document titled “Key Recommendations for the Union Budget 2022-23.”

“The extremely high GST rate (28%) is suffocating the industry. Therefore, we are requesting that the GST rates be streamlined to 18% for fixed speed air conditioners and inverter air conditioners as well,” he added. ‘ICEA.

Hailing the government for introducing a $10 billion PLI (performance linked scheme) for display panels and semiconductor chips, they said they would also ask Finance Minister Nirmala Sitharaman to have fixed deadlines for these projects.

Pallavi Singh, Vice President, SPPL, licensee of Indian brand Westinghouse TV, said that given the current shortage of semiconductors around the world, the government should help the potential sector and offer programs under the National Electronics Policy (NEP) 2019.

“Those who aim to manufacture in India and contribute to the growth of the economy can receive assistance in the form of grants. The NPE can also be extended to include and assist those who are already manufacturing consumer electronics in India at the instead of importing them,” she said. noted.

Since there are no open cell manufacturers in India and the viability of setting up a factory is far from certain, the Indian government should take this into account and reduce the customs duty on open cells at 0% against 5% currently, the required by players in the sector.

They demanded that with the pandemic causing a severe blow to the retail sector, the government should introduce programs and discounts to help rebuild this sector.

“The government should fund a technology adoption program, and government purchases of high-end IT products should be encouraged/prioritized to help create more demand,” said Sandeep Lodha, co-founder of Netweb Technologies.

“There must be special incentives for companies investing in R&D and there must be government incentives and facilitated collaborations between companies and high-end R&D facilities,” Lodha added.

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