Union Budget 2023-24 Expectation: What electronics sector wishes for this year

The announcement of the Union Budget 2023 is just around the corner. The whole nation is eagerly waiting for this year’s budget on 1 February by Union Finance Minister Nirmala Sitharaman. The country has several expectations and hopes from the Union Budget 2023-24, like infrastructure development, tax reliefs and benefits, development of the healthcare sector, and so on. The electronics sector of India is also hoping for some concessions from the Finance Minister. The electronic companies have urged the Indian government to reduce the tariffs on parts and components ahead of the Union Budget 2023-24, as reported by Mint. Here are some of the expectations of the electronics sector from Union Budget 2023: Reducing the tariffs on parts and components India Cellular and Electronics Association (ICEA) has recommended eliminating the existing tariffs of 2.75 per cent on parts, mobile phone components, and sub-assemblies. According to ICEA, the tariffs increase the burden on manufacturers and jeopardise the domestic industry. Lowering import taxes on components The ICEA has also advised lowering import taxes on components used for making open-cell panels for television production. Open cells are an important part of the LCD panels, which are used to make TVs. At present, open cells incur a basic customs tax of 5 per cent in India. Lower GST on appliances Kamal Nandi, business head and executive vice president of Godrej Appliances, said, “Large appliances industry suffers from continued low penetration levels in India despite the positive impact on the quality of life and productivity.” She further said that last year saw stagnation in the high-volume mass segments because of the prevailing economic conditions and low consumer sentiment among the middle class. Nandi urged that given this context, a lower Goods and Services Tax (GST) on appliances will help. Lowering tax slabs Manish Sharma, Chair for the FICCI Committee on Electronics & Manufacturing and Chairman, Panasonic Life Solutions India and South Asia, stated that lowering the tax slab on certain consumer durable electronics such as ACs and televisions would help offset the price pressure. This will in turn increase the demand for both AC (Split and Window) and TV (above 105 cm). He added that this will improve the affordability among customers and attract investments in component manufacturing. Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.