Budget 2017: Appliances and consumer electronics industry seeks doubling of customs duty to thwart imports

New Delhi: The appliances and consumer electronics industry has asked the Finance Minister to double the basic customs duty to 20 per cent for the sector in the upcoming Budget to boost local manufacturing and discourage imports.

Besides, the industry has also urged implementation of the Phased Manufacturing Plan, which would boost manufacturing of components.

"Streamlined to government's Make-in-India vision, the industry expects (the government) to increase the BCD (basic customs duty) onGST ACE (appliances and consumer electronics) goods from 10 per cent to 20 per cent to discourage imports of these goods," CEAMA President Manish Sharma said.

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) also wants the government to put the consumer durable products under 18 per cent slab in the proposed GST regime.

"We hope that the Phased Manufacturing Plan is implemented to give the necessary impetus to local manufacturing of components. These initiatives, if implemented, will not only create an ecosystem of Electronic System Design and Manufacturing but also help realise the Make-in-India vision," said Sharma, who is also Panasonic India & South Asia President & CEO.

The consumer electronics and appliances industry, which has suffered a setback in November and December on account of demonetisation, "is presently in the right momentum and is expected to grow at CAGR 9.5 per cent from 2015 till 2021," CEAMA said.

While the industry anticipates mobile handsets to be placed under 12 per cent GST slab, it has recommended that the CGST (central GST) credits should not be made permissible for imported mobile handsets, he added.

However, some players such as Inalsa Home Appliances' Head Marketing, Pankaj Gupta, requested the government to reduce customs duty on appliances to make them more affordable.

"We look forward to a Budget where few upcoming categories like chimneys, air purifiers, food steamers are given a preferential treatment. The import duties on such products may be reduced. This will enable these products to be sold at an affordable price," he said.

Usha International CFO Saibal Sengupta said that the government should take a rational view, keeping in mind the present situation of the economy rather than a populist one.

"Rather going for an all-populist Budget on the wake of ensuing political developments, the need of the hour is to provide necessary fillip to spring up immediate economic growth, which is repeatedly striving to bounce back, coupled with restoring investor and consumer confidence," he said.