CEAMA urges govt. to treat IT, Consumer Electronics at par

Kochi, May 18 (UNI) Urging the Centre to treat IT and consumer electronics at par, a leading industry association today said the difference between the two sectors was blurring with increasing convergence and they should have the same level of excise and VAT.

Addressing a press conference here, Mr Gulu Mirchandani, Chairman, Onida Group of Companies and former President of the Consumer Electronics and Appliances Manufacturers Association (CEAMA), said with the advent of digitalisation, there was a clear convergence of application and technologies in these two sectors.

Excise duty on consumer electronic products, including components and other inputs, should be rationalised to eight per cent. This was currently as high as 16 per cent.

Reducing the excise rates would also help to curb the grey market for goods such as VCD/DVD players, B&W TV sets, car stereos and radios, which was as high as 50 to 80 per cent, he said.

State VAT on consumer electronic products and IT products should be brought on par at four per cent, he added.

Mr Ravinder Zutshi, Deputy Managing Director, Samsung India, and vice-president, CEAMA, said the consumer appliances industry had registered a growth of about 22 per cent last year and it was expected to maintain this trend. High end products such as frost free refrigerators, split ACs and microwave ovens had registered growth rates ranging from 25 to 90 per cent, he added.

Observing that an increasingly affluent middle class was powering the consumer boom, Mr Zutshi quoted a McKinsey report which said that the Indian middle class was expected to touch 583 million by 2025, making India the fifth biggest consumer market in the world.

He noted that salary increases in India, ranging between 11 to 15 per cent during the past two years, were the highest in the Asia-Pacific region.

Mr K S Raman, CEO, Sundaram Electronics, and former president, CEAMA, said the association members today had a very useful interactive session with the Dealers Association of TVs and Appliances (DATA), Kerala, to boost the growth of the consumer electronics and home appliances industry.

Stating that the traditional trade channel had nothing to worry about with the advent of modern retail stores, Mr Raman said 70 per cent of the business was estimated to remain with the smaller businessmen as they could provide a personal touch to the customers, which was essential for the consumer goods sector.

UNI