Consumer electronics and appliance makers have welcomed Government’s decision to hike import duty on electronics items like smartphones and television, saying the move will boost domestic manufacturing industry and give a push to the Make in India initiative.
According to a PTI report: The Government has hiked import duty on smartphones, television sets, microwave, LED lamps and some other electronic items in a bid to protect domestic manufacturers.
Customs duty on television sets has been doubled to 20 per cent as also on LED lamps.
“This is a significant step as it will boost the domestic manufacturing industry and give a fillip to the government’s Make in India initiative,” Abhijit Kotnis, Chief Manufacturing Officer, Videocon was quoted by PTI as saying.
He further said this will also encourage foreign consumer durables companies to manufacture products in India rather than importing them.
The tax on import of microwave ovens too has been doubled to 20 per cent, the Finance Ministry said in a notification.
Manish Sharma, President, CEAMA was quoted by PTI as saying: “We have been pushing the government to increase the basic customs duty for CBUs imported into the country which in turn will benefit the overall domestic ACE industry.”
Consumer Electronics and Appliances Manufacturers Association (CEAMA) is an all India industry body in the consumer electronics and durables sector.
Customs duty on video recording equipment as well as TV cameras has been increased to 15 per cent from current 10 per cent. Imported smartphones will cost more with customs duty on them being increased to 15 per cent from nil now.
Sharma, who is also the President and CEO of Panasonic India and South Asia told PTI: “Further to this significant development, local manufacturing will grow, giving the much- needed impetus to the government’s Make-in-India vision.”
Kamal Nandi, Business Head and EVP, Godrej Appliances was quoted by PTI as saying: “This will benefit and promote domestic manufacturing of microwave ovens, supporting government’s initiative of Make In India.”
Import duty on set top boxes has been doubled to 20 per cent. Also, customs duty on lamps and lighting fittings including search lights and chandeliers has been doubled to 20 per cent while the same on electricity meters increased from 10 per cent to 15 per cent, the notification said.