Following are the key recommendations necessary for revival and healthy growth of the electronics components and equipment manufacturing sector:
>> Zero duty on all inputs for manufacture of electronic components and parts, including dual use inputs; necessary to avoid inverted duty.
>> Implementation of GST expeditiously with 12% GST.
>> 4% Vat on all electronic components and assemblies as these are industrial inputs.
>> In case of any delay in implementing GST, Zero CST on electronics value chain be made applicable.
>> 10% Excise Duty should be retained, considering the fragile global economic recovery.
>> 4% SAD should be abolished.
>> Finished electronic equipment import should be subject to at least 5% Customs Duty to encourage local manufacturing.
>> Mandate local content in key sectors such as telecom, rural IT infrastructure, e-governance projects (similar to 30% under DOFA in defence sector) and in special giveaway schemes such as the Tamil Nadu Government scheme of donating TVs.
>> No need to include electronic components and parts in any future FTA's.
>> Streamline excise procedures on import of inputs/raw materials for electronic components at 0% to equate with import of finished components without any procedural hassles.
>> Policy for encouraging local manufacture of champion products such as CFLs, Solar Lighting, Mobile accessories (Chargers) etc. Simple products required in large quantity with high employment potential.
>> For Electronic Components and Parts that have high value addition - Allow manufacturers to retain Excise Duty paid through PLA as interest free loan for 5 years.
>> Promote hardware manufacturing zones - clusters.
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