TV manufacturers call for lower tax

The domestic consumer electronics and television makers on Tuesday asked the government to bring down the tax on the industry on par with other countries, saying the free trade area signed with neighbouring countries like Thailand gave unfair tax advantage to companies importing goods into India.

They also warned that domestic consumer electronics and TV industry, which have manufacturing units in rural India, may be forced to shut shop and start importing goods for the Indian market, resulting in huge job losses in rural areas.

"What we are asking for is a level playing field," said Gulu Mirchandani, CMD of Mirc Electronics, along with other members of the Consumer Electronics and TV Manufacturers Association.

He said the total incidence of taxes on consumer electronics is 29 per cent. This includes Cenvat of 16 per cent and sales tax and VAT of 12.5 per cent levied in various states.

"We also have to pay Central Sales Taxes and Octroi etc," he said. In comparison, Thailand has a composite VAT of seven per cent, Singapore and Malaysia only five per cent and China 17 per cent, he pointed out.

With imports becoming more cheaper, Sony has shut down its TV manufacturing unit in Haryana and is now importing products for the Indian market from Thailand.

Similarly, Panasonic has stopped its audio making unit in the country and has decided to import the products for India, said Suresh Khanna, secretary general, Cetma.