1. Union Budget 2017: Duty cut on LED input materials will promote industry

Union Budget 2017: Duty cut on LED input materials will promote industry

To promote ebergy efficient lighting, the government today cut excise as well as import duties on input materials used to produce LED lamps, which has been hailed by the industry.

By: | New Delhi | Updated: February 1, 2017 9:04 PM
The scheme envisages replacing 77 crore incandescent bulbs with LED ones. (PTI) The scheme envisages replacing 77 crore incandescent bulbs with LED ones. (PTI)

To promote ebergy efficient lighting, the government today cut excise as well as import duties on input materials used to produce LED lamps, which has been hailed by the industry. Under the Domestic Efficient lighting Scheme UJALA, Power Ministry has already replaced over 20 crore incandescent bulbs with energy efficient LED lights. The scheme envisages replacing 77 crore incandescent bulbs with LED ones.

According to the Electric Lamp and Component Manufacturers Association of India (Elcoma), the move would help government’s ‘Make-in-India’ initiative. “This step is in favour of the domestic lighting industry to promote the Make-in-India drive,” said Elcoma Vice President Raju Bista.

The government has retained the overall 10 per cent customs duty over the import of finished LED products, which would support the domestic industry. “Now, value addition in LED products by importing the components would be cheaper and domestic LED light makers would grow,” said Bista who is also Managing Director of Surya Roshni. In the Budget, the government has proposed to reduce the excise duty to 6 per cent and basic customs duty to 5 per cent and countervailing duty to 6 per cent from the existing duty on “all parts for manufacture of LED lights or fixtures, including LED lamps”.

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It has also proposed to reduce customs duty on “all inputs for use in the manufacture of LED Driver and MCPCB for LED lights or fixtures, including LED lamps” to 5 per cent. Dixon Technologies Chairman & Managing Director Sunil Vachani said: “As far as the LED industry is concerned, they have reduced the excise duty, which is a welcome step but there is certain anomalies also which has come because of this.”

According to him, the impact would be “neutral” on the price.

“Most of these items are in ITA 1 agreements and they are not taxed. The government would have to rectify this anamoly,” Vachani said.

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