The Indian government should not change the existing custom duties, urged Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd, Kodak brand licensee. Talking about the upcoming union budget for FY2022-23, Marwah said the products should not exceed the 18% tax slab right now to encourage consumerism and improve market sentiments. A stable GST tax slab is required to boost the country’s MSME and manufacturing sector.
Marwah said that India could become the world’s third-largest market for televisions with an estimated growth of 15% in the market size, which will increase the number of units shipped annually to 16 million.
Government Should Consider Lowering Tax Rates
By lowering tax rates for popular electronics, the government will motivate more customers to opt for new gadgets.
“Government should consider lowering the tax rate on consumer electronics as this will encourage consumers to buy higher ASP products. This will also help in digital India, as consumers will opt for more tech products,” said Marwah.
Higher average selling price (ASP) products with lower tax rates would motivate consumers to get the latest technology with enhanced communication features which will help India in achieving its digital vision.
Marwah congratulated the Indian government for introducing a $10 billion PLI scheme for the semiconductor chips and display panels. With the PLI scheme, the Indian government is bringing manufacturing within the country, creating more jobs and reducing components prices for the local device assemblers and manufacturers.
Marwah further requested the Finance Minister for having a timeline for these projects as they should not be limited till the Memorandum of Understanding (MoU) as this could be a big positive for the electronics sector.
Sea freight has increased ten times in the recent past, but along with that, the timeline for deliveries and movements has also increased by two times, noted Marwah. This is happening because of a big syndicate in the sector which is resulting in a huge loss to the economy. Thus, Marwah has also requested the government to take strict measures to control the same.