Budget 2018: Here’s what electronics and computer software sector expects from Arun Jaitley

By: |
Updated: Jan 19, 2018 11:39 PM

Union Budget 2018 is just around the corner. Just ahead of it, delegations belonging to different sectors of the economy met Finance Minister Arun Jaitley and submitted respective pre-budget proposals. Information and communication technology (ICT) sector also notified Arun Jaitley about their expectations from the Budget 2018.

Budget 2018, budget india 2018, tds data, itr, narendra modi, modi government, budget 2018, income tax returns, itr, itr file, itr returns, pm modi, tds data, Income Tax Act,The government in Budget 2018 must encourage electronics manufacturing and provide preferential tax treatment, expects ICT sector.

Union Budget 2018 is just around the corner. Just ahead of it, delegations belonging to different sectors of the economy met Finance Minister Arun Jaitley and submitted respective pre-budget proposals. Information and communication technology (ICT) sector also notified Arun Jaitley about their expectations from the Budget 2018. The important suggestions received on proposals for Budget 2018 from the industry mainly included a hike in BCD to 20 percent, levy of customs duty on PCBs, reimbursement of 100% CGST portion on excise free zones and blockage of working capital for all the manufacturing companies. Important suggestions received on pre-budget proposals from the Industry are as under:-

1) Increase of BCD to 20% for consumer electronics and home appliances products: In the last few years, consumer electronics sector has not seen any major investments coming into manufacturing of consumer electronics, home appliances products. This is due to the fact that many of the brand owners find it cheaper to import finished products in view of the following issues including weak ecosystem for electronic components manufacturing, higher finance costs, strong Indian rupee, and higher duty on finished products. So, Budget 2018 should consider all these factors.

2) Levy of Customs Duty on PCBs: To encourage higher value addition, ICT recommends Finance Minister Arun Jaitley should impose a customs duty of 10% on populated PCBs for manufacturing of mobile phones in Union Budget 2018.

Watch video

3) Reimbursement of 100% CGST Portion on Excise Free Zones: The Finance Minister Arun Jaitley should reimburse 100 percent of CGST portion by creating a special corpus fund in Budget 2018. This will ensure that the units in the excise free zone can function till the end of their exemption period.

4) Blockage of working capital for all the manufacturing companies especially the SMEs because of GST: The electronics industry of India therefore, requires urgent attention of the Finance Minister Arun Jaitley if we have to remain competitive in the challenging environment. The government in Budget 2018 must encourage electronics manufacturing and provide preferential tax treatment, land subsidies, financial incentives etc., besides improving the infrastructural facilities.

Do you know What is Finance Bill, Short Term Capital Gains Tax, Fiscal Policy in India, Section 80C of Income Tax Act 1961, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Budget 2021: Newsprint cost up 20% in last 3 months, publishers seek waiver in customs duty
2Union Budget of India 2021: Time for a budget focusing on health and hygiene
3Budget 2021: Electronics Manufacturing – crystal gazing the growth wave in India