Durables industry seeks duty cuts in Budget

The consumer durables industry has sought rationalisation of tax structure across the country in the forthcoming budget, and an assurance on timely implementation of goods and services tax from the next fiscal.

"To prepare a common platform for manufacturing units, the government must look for implementation of GST as promised in the previous budget," LG Electronics India managing director Moon B Shin told PTI.

The tax boundaries need to be rationalised and state sales tax should be 'communised', without any exception of states putting any additional tax, Shin said.

There are apprehensions in certain quarters of the industry that GST may not be implemented as scheduled from April 2010 because of the various issues that need to be resolved at the central as well as the state levels.

Another major area of concern for the industry players is the high customs and excise duties.

Panasonic India has called for a reduction in the excise duty from 10 per cent to six per cent.

"We want this year's budget to have special provision for promoting consumer durables by making them cheaper through tax cuts and provide some relief in the form of relaxation in sales and excise duty from 10 per cent to 6 per cent. . .," Panasonic general manager, Brand Management and Corporate Strategy, Sabiha Kidwai said.

"We would also urge the government to abolish octroi duty levied in some states," she added.