: Budget FY24 Expectations: Electronics industry demand tax rationalisation in Union Budget #FinanceIndia #StockMarketNEWS Budget FY24 Expectations: Electronics industry demand tax rationalisation in

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Budget FY24 Expectations: Electronics industry demand tax rationalisation in Union Budget #FinanceIndia #StockMarketNEWS
Budget FY24 Expectations: Electronics industry demand tax rationalisation in Union Budget New Delhi, Jan 16 (KNN) Ahead of the Union Budget 2023-24, the electronics industry has urged the government to rationalise duty on parts and components of mobile phones and sub-assemblies.

The Industry also sought revision of the duty structures that have become a burden on the industry and is impacting industry’s ability to meet production targets, essential for the government’s ‘Make in India’ initiative, reported Livemint.

Industry body, the India Cellular and Electronics Association (ICEA), in their pre-budget recommendation pointed out that the existing tariffs of 2.75 per cent on parts, mobile phones components and sub-assemblies should be removed as they are adding to the burden on manufacturers and endangering the domestic industry.

It also recommended the continuation of 20 per cent customs duty on high-end phones with a maximum BCD pegged at Rs. 4,000 per device.

The association also urged the government to reduce duty on parts of open cell panels for television manufacturing.

“Open cells are a critical component of LCD panels, used in manufacturing TVs. India currently charges a 5 per cent basic customs duty on open cell components,” it said.

Other key demand made to the government includes better synchronization between customs, income tax and GST authorities so that taxes on royalties paid to foreign firms by domestic electronics companies are taxed only once as per the contract between supplier and user.

The Manufacturers Association for Information Technology (MAIT) also sought changes to the direct taxes levied on firms, including tax deduction at source (TDS).

It sought an increase in the threshold of Rs 20,000 prescribed in Section 194R of the Income Tax Act to Rs 1, 00,000.

Wearable brands, too, asked for a reduction in duty on raw materials. (KNN Bureau)