Consumer electronics makers seek customs duty hike on imports

New Delhi: The domestic appliances and consumer electronics industry expects an increase in customs duty on finished goods to discourage imports and facilitate import substitution, along with incentives for specific R&D and localisation projects under the PLI scheme, in the upcoming Budget.

The nearly Rs75,000-crore industry is expecting 'certain enablers' that will encourage domestic manufacturing, said the Consumer Electronics and Appliances Manufacturers Association (CEAMA). "To further encourage local manufacturers, there should be a differential duty of five per cent between the parts and finished goods. This will provide the much-needed incentive to the manufacturers and help in building manufacturing base in India," CEAMA president Eric Braganza.

It has also asked for a road map of duty structure for the LED industry for the coming five years towards proper planning of investments and policy interventions. "Two hundred per cent weighted deduction for R&D (research and development) spends is critical for keeping up the technological advancement for the Indian manufacturer. Additionally, incentives can be given for specific R&D and localisation projects in the field of electronics under the PLI scheme," he said.

The industry also expects the government to lower the GST on air conditioners to an 18 per cent tax slab and also a similar reduction for TV (above 105 cm screen size), Braganza added. Besides, some makers also expect the government to lower the GST slab for energy-efficient products further to 12 per cent, a move that will not just help to drive demand but also increase the adoption of sustainable appliances - in line with India's commitment to climate goals. The Budget session is set to begin on January 31 and Finance Minister Nirmala Sitharaman will present the annual Budget on February 1.