Manufacturing duty Current Affairs
The Ministry of Electronics and Information Technology (MeitY) in its key recommendations for Union Budget 2017-18, has suggested differential excise duty regime and tax exemptions to be expanded to personal computers and servers.
Ministry’s suggestions were as per the Phased Manufacturing Roadmap, it had worked out in consultation with the NITI Aayog.
Recommendations for Budget
- Retain differential excise duty regime and tax exemptions granted for the manufacture of mobile handsets and tablets, under the impending GST regime, to boost domestic manufacturing of electronic products.
- The current differential duty makes imports of mobile handsets more expensive compared with making them locally, encouraging smartphone players to set up manufacturing units in India.
- Specified capital goods for the manufacture of electronic goods be exempted from basic customs duty and countervailing duties to increase the competitiveness of the Indian electronics Industry.
- Specified key raw materials and inputs for the boosting manufacture of LCD and LED panels should be permitted at 0% customs duty.
- Extension of income tax benefit for research and development (R&D) to software products and the chip design industry. The proposal is expected to boost the generation of intellectual property in the country.