• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

In order to encourage the use of set-top box (STB), the association has suggested that the excise duty on STB should be reduced to 8 per cent.

Kolkata , Nov. 26

THE Consumer Electronics and TV Manufacturers Association (Cetma) has suggested that Central and State value-added tax (VAT) be combined and a composite VAT of 17 per cent, as is applicable in other countries such as the European Union, China, Nepal and Bangladesh, be levied on consumer electronic products.

The association also suggested that the special additional duty either be abolished or be made modvatable.

Currently, Customs duty on specific capital equipment is 10 per cent, although the indigenous capital goods industry for the electronics sector is non-existent. Cetma feels that capital equipment should not be considered as a final product since high Customs duty on capital equipment increases the project cost, thereby making the industry non-competitive. It is, thus, suggested that Customs duty on capital equipment should be reduced to 0 per cent to encourage growth of the electronic hardware industry.

Cetma has urged the Union Finance Ministry to implement the Kelkar Committee's recommendations of 20 per cent Customs duty on finished products and 10 per cent duty on intermediate product such as colour picture tube. The differential rate of Customs duty on finished and intermediate products is said to be the trend in other countries including China. The association feels that such a differential duty will make the domestic TV industry globally competitive and would result in reduction of prices of colour TV sets.

While the peak rate of Customs duty had been brought down from 30 per cent to 25 per cent in the fiscal year 2002-03, the corresponding reduction in duty on inputs to the consumer electronics industry had not been made. According to Cetma, this has resulted in a situation where there is no differential between the Customs duty on inputs and the finished products, thereby encouraging the import of consumer electronic products.

In order to encourage the use of set-top box (STB), the association has suggested that the excise duty on STB should be reduced to 8 per cent and that the radio and analog audio system be included in the category of low rate of excise duty.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Ramco group invests Rs 65 cr in wind power

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line