new Delhi. Industry organization India Cellular and Electronics Association (ICEA) has reiterated its demand to cut the Goods and Services Tax (GST) for the mobile industry ahead of the Union Budget to be presented on February 1. The organization has termed the 50 percent increase in GST in March 2020 a cruel blow to the industry, with the ECEA terming the decision as flawed.
ICEA President Pankaj Mohindru said in a statement, “To achieve the target of smartphones in the hands of every Indian and to ensure the domestic mobile phone market of $ 80 billion, it is necessary to reduce the GST on mobile phones from 18 percent to 12 percent.”
The ICEA also recommended a budget of Rs 500 crore for the establishment of various Centers of Excellence for key areas of electronics development and a budgetary allocation of Rs 200 crore for mobile design centers.
Among other recommendations, the industry body also demanded an interest of 5 percent and a credit guarantee of Rs 100 crore for loans up to Rs 1,000 crore.
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