ICEA's Mohindroo seeks 5% GST, says mobile production declines to 22-crore units
NEW DELHI: The Goods and Services Tax (GST) levied on mobile handsets in India should be brought down to 5%, while the volume of units manufactured domestically is reduced to 22 crores (220 million), an industry group executive said Thursday.
'Mobile phones should have been at a 5% GST. We had a benchmark of 12%. Today, it is 18%. This is a major task to drive affordability,' Pankaj Mohindroo, president, India Cellular & Electronics Association (Icea) said, adding that smartphone production volume has come down to 22 crores, from 30 crores units previously.
Mohindroo was speaking at an industry event, organised by the Confederation of All India Traders (CAIT), All India Mobile Retailers Association (AIMRA), and the Organised Trade Retailers (ORA).
The Delhi-based industry group represents Chinese brands such as Asus, Xiaomi, Oppo and Vivo, as well as Apple and Corning in India. Currently, India boasts to have more than 300 manufacturing units and is experiencing significant growth supported by various government programs such as the Production Linked Incentive (PLI) scheme and Phased Manufacturing Programme (PMP).
Citing China's stimulus, he said that the Indian government should look at driving demand and fuelling growth, and added that the country has witnessed an increase in value terms though.
Recently, China has come up with a 15% subsidy on smartphones and other electronics priced below 6,000 yuan (nearly Rs.70,000). The strategy to offer financial incentives for device upgradation is aimed at facilitating domestic consumption.
