Niti Aayog's strategy for electronics manufacturing

To push electronics manufacturing in India, Niti Aayog on Thursday gave out a number of recommendations which includes clearly establishing tax liabilities and rolling out of Goods and Service Tax (GST) Bill.

In its report on 'Make In India' strategy for electronic products Niti Aayog said that the objective behind this strategy is to create an ecosystem in which Indian electronics industry becomes globally competitive. "End tax uncertainty and simplify tax regime. Clearly establish in writing the tax liabilities applicable to producers of electronic products under different circumstances in full detail. Eliminate tax exemptions and simplify tax system. Rollout GST," Niti Aayog said in its recommendation.

It further said that there should be an end to inverted duty structure and bring all input tariffs down to the tariff applicable to the final product. "Exports to be subjected to zero taxes: all tariffs and domestic taxes paid to be rebated back at the exit point. Impose Countervailing duty (CVD) equivalent to all domestic indirect taxes on imports," it further said in its report.

Niti Aayog also said that there should be a ten-year tax holiday for a firm that invests a substantial sum and generates a large employment opportunity within Coastal Economic Zones (CEZ). For this purpose an investment threshold of $1 billion with the employment of 20,000 may be considered.