ICEA Pushes For Simplified Four-Tier Electronics Duty Structure Ahead Of Union Budget
(MENAFN- KNN India)
New Delhi, Jan 1 (KNN)
Ahead of the Union Budget, the India Cellular and Electronics Association (ICEA) has urged the Finance Ministry to streamline the nation's electronics duty structure, describing the current framework as the 'most complex globally.'
The industry body is advocating for a simplified four-tier structure to replace the existing multiple-slab system.
According to a letter obtained by CNBC-TV18, the ICEA highlights how the current duty structure undermines India's global competitiveness and export capabilities.
The proposed streamlined structure would consist of four tiers: zero duty on basic parts and inputs, 5 per cent on specific component parts, 10 per cent on sub-assemblies and components, and 15 per cent on finished goods.
The organisation has outlined several sector-specific concerns and recommendations. In the mobile manufacturing sector, the ICEA is pushing for a 2.5 per cent duty reduction on crucial components such as PCBA parts, camera modules, and connectors, citing that current high tariffs inflate production costs.
For television manufacturing, the body argues that the existing 2.5 per cent duty on sub-assembly inputs for open cells hampers local production and seeks its elimination.
Regarding hearables, the ICEA is requesting an extension of the phased manufacturing programme (PMP) benefits beyond FY26.
The program, introduced in the 2022 Budget with scheduled duty reductions on components, was initially planned to conclude in FY26.
The industry body contends that the sector's nascent status necessitates additional time for domestic production scaling and supply chain maturation.
The association has also addressed concerns in the automotive sector, particularly regarding display manufacturing.
It suggests eliminating duties on display assembly inputs, arguing that the current 15 per cent duty on car display parts compromises cost-effectiveness and impedes efforts to establish scale in display manufacturing operations.
(KNN Bureau)
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