Top Story

e4m_logo.png

Home >> Marketing >> Article

Cetma plea to cut sales tax on CTVs

27-January-2004
Font Size   16
Cetma plea to cut sales tax on CTVs

In a bid to eradicate bottlenecks such as low penetration levels and poor purchasing power of consumer electronics, the Consumer Electronics and TV Manufacturers Association (Cetma) is planning to take concrete steps and plead with the government to reduce sales tax on colour televisions (CTVs) from 17 per cent to 12 per cent in the western region.

This is because Cetma is understood to have observed that the northern region has witnessed double-digit growth in the CTV segment in the past one year due to sales tax on CTVs being 12 per cent. However, this is not the case in the western region, which witnessed a dismal growth.

Further, Cetma has also stressed the need to reduce sales tax on washing machines and microwave ovens from 23 per cent to about 12 per cent, nationally. In fact, there is no reason and need to impose a sales tax on the two specific products, Cetma secretary-general Suresh Khanna told FE.

According to Philips India Ltd vice-president consumer electronics D Shivkumar, who has recently been appointed vice-president (western region) Cetma: “If the sales tax on CTVs is reduced from 17 per cent to 12 per cent in the western region, prices of CTVs will come down by five per cent and consumers can avail of CTVs at reduced prices. Companies will also benefit as the move will enable them to spur CTV volumes. Besides, they will be able to invest much more on R&D at their manufacturing plants. Hence, such a move should be welcomed and the government should consider this matter seriously.”

On the customs duty structure, explained Mr Khanna: “The government should look into creating a three-tier duty structure whereby customs duty should be lower on raw materials needed for manufacturing CE products, higher on the intermediary products and highest on the fini-shed products. But in India, this is not the case. The Indian CE market is very competitive and this is the main issue which needs to be addressed.”

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

Shaan Raza, Deputy Managing Director, Optimise, spoke to exchange4media about their journey since inception and their new technology, TrackingX, which they are planning to launch in India by February...

Meanwhile, Radio City and Radio Mirchi ruled Bangalore and Kolkata respectively

The Indian out-of-home advertising company selects Edge1's ERP software platform to automate their OOH business