Budget 2022 Expectations: The budget season brings in fresh hopes for different sectors across the country. From salaried middle class, startups and banks, to retailers and fintech firms — the Budget session is important for everyoone across the country. This year, finance minister Nirmala Sitharaman is set to present the Union Budget 2022 on February 1, in a paperless format.
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As said above, the Budget brings hope for everyone. The retail sector is no different. While different areas across the retail sector has different demands, the electronic sector aimed at consumers is reportedly going to see a change. According to a report by the Hindustan Times, the government is going to revise customs duties on components or sub-parts of consumer electronics and mobile phones in order encourage local manufacturing.
While this move of the government is likely to help the specific area during Budget 2022, there are other demands that retailers dealing with electronic products for consumers have.
“With the Budget 2022- 23, we hope and sincerely urge that the government reduce GST on all consumer electronics to reflect those available on raw materials to reduce the disparity, especially since in today’s day and age, consumer electronics are tagged as necessities by all categories of consumers in India,” said Pallavi Singh, vice president of Super Plastronics PVT LTD (SPPL), India brand licensee of Westinghouse TV.
She said that a GST cut is necessary on televisions during the Budget 2022. “With the current rate of 18 per cent on televisions up to 32 inches only, there is a vast range of televisions that comes under the ambit of the 28 per cent rate. A reduction in the rate to 18 per cent even in televisions up to 43 inches will bring a huge relief since the majority of the consumers in India fall under the 32 to 43 range,” added Singh.
“As we are going through another wave, this is an indication of how important Atma Nirbhar Bharat is. To boost Indian manufacturing and MSMEs, we need a stable GST tax slab. No product should be above the 18 per cent slab, and they must now encourage consumerism in order to improve market sentiment,” said Avneet Singh Marwah, CEO at SPPL, exclusive brand licensee of Blaupunkt in India.
“By doing this, India could become the world’s third-largest market for television. The market size could grow by 15 per cent each year, reaching 16 million units. We urge the government to not change any customs duties for the time being, as the industry is moving towards stable condition,” he added.
Pallavi Singh also said that the government should boost Make in India initiatives. “Given the current semiconductor shortage in the world, our government should aid the potential sector and afford schemes under the National Policy on Electronics,” she said.
“This, ideally, should also be backed by tax subsiding schemes so as to reduce the burden on an entity since the quantum of investment required is huge, Singh added.
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