Slowdown-hit tech cos seek incentives
All inputs duties on mechanics should be removed; The duties imposed on cells and chip on film (COF) have created an inverted duty structure for the manufacturing: ICEA
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New Delhi: The Indian IT and electronics leaders on Sunday urged the Centre to lift certain tariffs and announce incentive schemes for sectors impacted by recession in the Union Budget for FY24.
Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), said that tariffs on inputs and components are an important barrier to increasing localisation.
"However, some of the smaller tariffs should be done away with to support local businesses and bring ease of doing business. ICEA recommends that the tariff of 2.75 per cent (including social welfare surcharge), among other smaller tariffs which have no beneficial impact and only create a burden for legitimate manufacturers, is removed," Mohindroo said in a statement.
Further, the duty on the mechanics is high, but the vertical has not grown because unintended duties on inputs were imposed.
"All inputs duties on mechanics should be removed. Additionally, open cell is a hugely capital-intensive industry, and it is important to encourage it. However, the duties imposed on cells and chip on film (COF) have created an inverted duty structure for the manufacturing of open cells in India," Mohindroo added.
ICEA recommended reducing the inputs of the open cell at zero duty. The association also suggested that the government should ease the BCD (basic customs duty) on high-end phones.
