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Roadmap laid for rationalisation of tariffs on electronics components, sub-assemblies

'Tariff stability and predictability are crucial for investments', the vision document said
Last Updated 02 November 2021, 16:55 IST

A vision document on increasing India’s Electronics exports called for tariff rationalisation on components and sub-assemblies.

“Tariffs should be rationalised especially for components and sub-assemblies — with the introduction of lower tariffs and removal of an inverted tariff structure. The currently prevailing high tariffs would increase costs by 4–5%, significantly negating the positive support provided by the PLI (production linked incentive) scheme,” said the titled ‘Increasing India’s Exports and Share in Global Value Chains.’

The Vision Document released by India Cellular & Electronics Association (ICEA) in collaboration with the Ministry of Electronics and Information Technology on Tuesday says, “Tariff stability and predictability are crucial for investments. Mechanisms such as the RoDTEP should be allocated more funds and the existing rates should be reviewed.”

“To maximise export support, RoDTEP (Remission of Duties and Taxes on Exported Products) rates should reflect the actual indirect taxes charged and the items covered should draw upon the practices of other similar countries. For instance, refunding all indirect taxes on power is likely to reduce power costs by 30% and total costs by 0.6%. Furthermore, policies that are critical for relocation of the industry, such as PLI, should be implemented expeditiously,” says the document.

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(Published 02 November 2021, 16:51 IST)

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