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Journalism of Courage
JAN 18: In the backdrop of unmindful dumping of cheap consumer goods items from China, the members of Consumer Electronics and TV manufacturers Association (CETMA) met here in Mumbai to chalk out their strategies and pre-budget demands. Putting a brave face, CETMA has set a turnover target of Rs 12,000 crore for the industry this fiscal and expects it to growth to Rs 1,00,000 crore by 2010.
In its pre-budget memorandum the industry has set an ultimatum and threatened to stop production of black and white if the government does not reduce excise duty on its components. "The 16 per cent CENVAT and 12 per cent sales tax on B&W TVs has resulted in the mushrooming of the grey market, if urgent steps are not taken by the Centre, then this over Rs 1,000 crore industry will be entirely wiped off," CETMA president Rajeev Karwal said here today.
During the last three quarters the B&W industry has been reporting a negative growth up to 30 per cent, while the grey market share has increased by 35 per cent to 55 per cent, he said. "The unorganised television industry sells a B&W for a mere Rs 1,000, the Chinese make it for Rs 1,200 and we in the organised sector charge around Rs 5,000 due to the heavy tax structure," he said. The association has requested the finance ministry to exempt specific B&W TV components like CRT, glass parts, tuner and deflection components, Karwal added.
Justifying the demand K S Raman, MD of Globalwonders.com, the first e-commerce vortal for consumer electronics and appliances, said "when the sales tax on bicycle is 4 per cent, there is no reason in keeping sales tax on B&W TV set at 12 per cent. Due to 16 per cent CENVAT and 12 per cent sales tax on the low value product, most of radio transistors are being assembled in the grey market, which do not pay any tax to the government."
