TIL Desk/Business/New Delhi/ Industry body India Cellular and Electronics Association (ICEA) has renewed its demand for reducing Goods and Services Tax (GST) for the mobile industry ahead of the Union Budget to be presented on February 1. Terming the GST hike of 50 per cent in March 2020 as “a cruel blow” dealt to the industry, the ICEA said that the rationale presented to the GST Council for raising the rate was “flawed”.
“To achieve the goal of smart phones in the hands of every Indian and to attain a domestic mobile phone market of $80 billion, it is imperative to reduce the GST on mobile phones from 18 per cent to 12 per cent,” Pankaj Mohindroo, Chairman, ICEA, said in a statement.
ICEA also recommended Rs 500 crore budgetary allocation for establishing various Centres of Excellence for the key areas of electronics development, and a Rs 200 crore budgetary allocation for Mobile Design Centre. Among other recommendations, the industry body sought interest subvention of 5 per cent for loans up to Rs 1,000 crore and credit guarantee of Rs 100 crore.
