Thakur
Banned
- Joined
- 30 Aug 2013
- Messages
- 14,856
- Reaction score
- 8,575
Q. What are your expectations from the
new government and the upcoming Budget?
A. The consumer durable industry is all set to
ride high with the emergence of the new
government, as new policies and initiatives will
pave the way for growth and advancement. The
newly formed government has already
indicated a clear tax policy and interest rate
rationalization which would help in the growth
of manufacturing industries.
With the ensuing Budget aiming to stabilize the
economy, we expect a turnaround in consumer
sentiment. The reduction of excise duty in the
Interim Budget from 12 per cent to 10 per
cent on products, inputs and parts had come
as a great relief for the industry and helped
the sector.
CEAMA welcomes the finance ministry's move
to extend the excise duty concession till
December 2014 . CEAMA would request for this
continued support even beyond December
2014 as the industry is still struggling and the
index of industrial production has not shown a
healthy growth. CEAMA further foresees an
improvement in the industry standards,
eradication of grey markets and an overall
boost to the sector from the new government.
The digitalization of cable TV has created huge
demand for Set Top Boxes in the country and
it is likely to reach 75 million units for next
one to two years. Thus, it is very important to
manufacture Set Top Boxes in the country.
However, industry would need proper
incentives to boost Set Top Box manufacturing
in the country. CEAMA recommends that the
provision of 'C' form waver should be
applicable to Set Top Boxes. Currently, Indian
manufacturers have to pay 12.5 per cent to 14
per cent VAT as Cable and DTH operators do
not provide them 'C' Form, since they are
leasing out boxes. However, DTH operators do
not pay any VAT when they import the boxes.
Set Top box industry provides huge potential
for economic activity, employment generation
and saving valuable foreign exchange and
increased revenue for the government.
Recently, a CEAMA delegation had a meeting
with the information and broadcasting minister
and apprised him about the status of the DTH
industry. We are encouraged on his positive
response and expecting a favourable action
from government soon.
Q. What steps should the government take
to revive the manufacturing sector and
consumer electronics industry, in
particular?
A. The consumer electronics industry is
struggling due to a sluggish market and bleak
weather conditions. In order for the industry
to bounce back, CEAMA has proposed
recommendations keeping in mind the twin
objectives of manufacturing growth and also
increasing demand of the products.
We strongly propose removal of the inverted
duty structure on consumer electronics and
home appliances, arising due to
implementation of free trade agreements. We
also recommend reviewing the existing FTAs.
The government should also accelerate
implementation of a uniform Goods and
Service Tax (GST) that will lower transaction
costs.
The government also needs to provide the
same incentives to the home appliances
industry which are available to the consumer
electronics industry under the ESDM policy, as
home appliances contribute substantially to the
current account deficit of the country. There is
an urgent need to promote manufacturing of
these products and their components within
the country.
Q. What are the issues facing the
industries that require urgent remedy from
this Budget?
A. FTAs have gravely affected manufacturing in
our sector. It has also resulted in loss of
revenue to the government. CEAMA strongly
recommends a review of existing FTAs. We
urge speedy implementation of the Goods &
Services Tax that will ultimately lower
transaction costs.
Q. Any other issues that the Budget should
focus on?
A. There is a general consensus in the country
on speedy implementation of GST. Introduction
of GST is expected to decrease compliance
burden for businesses and will bring down the
total incidence of taxes by eliminating
cascading of taxes on goods and services. We
urge that GST should be implemented soon and
the tax system should be made simpler and
transparent, so that the honest tax payer is
not harassed.
Small TV manufacturers who are making CRT
TVs are facing very difficult situation due to
demand shrinking rapidly. At present, smaller
size LCD/LED TVs are not viable to manufacture
due to 10 per cent duty on panels below 19
inch. Therefore, we recommended that on
smaller size panels, customs duty should be
brought down to zero to help TV
manufacturers who are SMEs. The production
of indigenous Colour Picture Tube (CPT) has
stopped and TV manufacturers in the country
have no option but to import CPTs by paying
10 per cent customs duty, we have
recommended that import duty on CPT be
brought down to zero.link here http://m.businesstoday.in/story/budget-2014-gst-implementation-manufacturing/1/207881.html
new government and the upcoming Budget?
A. The consumer durable industry is all set to
ride high with the emergence of the new
government, as new policies and initiatives will
pave the way for growth and advancement. The
newly formed government has already
indicated a clear tax policy and interest rate
rationalization which would help in the growth
of manufacturing industries.
With the ensuing Budget aiming to stabilize the
economy, we expect a turnaround in consumer
sentiment. The reduction of excise duty in the
Interim Budget from 12 per cent to 10 per
cent on products, inputs and parts had come
as a great relief for the industry and helped
the sector.
CEAMA welcomes the finance ministry's move
to extend the excise duty concession till
December 2014 . CEAMA would request for this
continued support even beyond December
2014 as the industry is still struggling and the
index of industrial production has not shown a
healthy growth. CEAMA further foresees an
improvement in the industry standards,
eradication of grey markets and an overall
boost to the sector from the new government.
The digitalization of cable TV has created huge
demand for Set Top Boxes in the country and
it is likely to reach 75 million units for next
one to two years. Thus, it is very important to
manufacture Set Top Boxes in the country.
However, industry would need proper
incentives to boost Set Top Box manufacturing
in the country. CEAMA recommends that the
provision of 'C' form waver should be
applicable to Set Top Boxes. Currently, Indian
manufacturers have to pay 12.5 per cent to 14
per cent VAT as Cable and DTH operators do
not provide them 'C' Form, since they are
leasing out boxes. However, DTH operators do
not pay any VAT when they import the boxes.
Set Top box industry provides huge potential
for economic activity, employment generation
and saving valuable foreign exchange and
increased revenue for the government.
Recently, a CEAMA delegation had a meeting
with the information and broadcasting minister
and apprised him about the status of the DTH
industry. We are encouraged on his positive
response and expecting a favourable action
from government soon.
Q. What steps should the government take
to revive the manufacturing sector and
consumer electronics industry, in
particular?
A. The consumer electronics industry is
struggling due to a sluggish market and bleak
weather conditions. In order for the industry
to bounce back, CEAMA has proposed
recommendations keeping in mind the twin
objectives of manufacturing growth and also
increasing demand of the products.
We strongly propose removal of the inverted
duty structure on consumer electronics and
home appliances, arising due to
implementation of free trade agreements. We
also recommend reviewing the existing FTAs.
The government should also accelerate
implementation of a uniform Goods and
Service Tax (GST) that will lower transaction
costs.
The government also needs to provide the
same incentives to the home appliances
industry which are available to the consumer
electronics industry under the ESDM policy, as
home appliances contribute substantially to the
current account deficit of the country. There is
an urgent need to promote manufacturing of
these products and their components within
the country.
Q. What are the issues facing the
industries that require urgent remedy from
this Budget?
A. FTAs have gravely affected manufacturing in
our sector. It has also resulted in loss of
revenue to the government. CEAMA strongly
recommends a review of existing FTAs. We
urge speedy implementation of the Goods &
Services Tax that will ultimately lower
transaction costs.
Q. Any other issues that the Budget should
focus on?
A. There is a general consensus in the country
on speedy implementation of GST. Introduction
of GST is expected to decrease compliance
burden for businesses and will bring down the
total incidence of taxes by eliminating
cascading of taxes on goods and services. We
urge that GST should be implemented soon and
the tax system should be made simpler and
transparent, so that the honest tax payer is
not harassed.
Small TV manufacturers who are making CRT
TVs are facing very difficult situation due to
demand shrinking rapidly. At present, smaller
size LCD/LED TVs are not viable to manufacture
due to 10 per cent duty on panels below 19
inch. Therefore, we recommended that on
smaller size panels, customs duty should be
brought down to zero to help TV
manufacturers who are SMEs. The production
of indigenous Colour Picture Tube (CPT) has
stopped and TV manufacturers in the country
have no option but to import CPTs by paying
10 per cent customs duty, we have
recommended that import duty on CPT be
brought down to zero.link here http://m.businesstoday.in/story/budget-2014-gst-implementation-manufacturing/1/207881.html
