CEAMA’s budget wishlist: Hike duty on finished goods

New Delhi (PTI): 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 Rs 75,000-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 a 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.

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.

Godrej Appliances Business Head and Executive Vice-President Kamal Nandi said the industry has been grappling with unprecedented commodity prices, shortage of components and subdued volume growth especially in high volume segments on the demand side.

Consumer durables like air conditioners, refrigerators and washing machines have become essential household items. “We are expecting this Budget to rationalise GST for these products. Air conditioners are still in the highest tax slab of 28 per cent, which we expect to be brought down to 18 per cent.”

Panasonic CEO (India and South Asia) Manish Sharma said the industry can expect an increase in import tariffs on completely built-up (CBU) audio products. “With new players making forays into the business, the demand and possibilities to meet them are at an all-time high. We expect some tariff barriers on audio to encourage domestic manufacturing,” said Sharma.