You are here: Home » Budget » Run-up » Industry
Business Standard

Consumer durables industry seeks excise duty cut in Budget

We strongly propose a reduction in the excise duty to give an overall boost to the sector, says CEAMA

Press Trust of India  |  New Delhi 

Arun Jaitley

body CEAMA has sought reduction in excise duty on consumer durables in the forthcoming to help the sector combat demand slowdown.

"The recent rollback of the excise duty has led to an increase in product prices passed on to consumers, thereby adversely impacting their sentiment and leading to a subsequent drop in sales..

Read our full coverage on Union Budget

"We strongly propose a reduction in the excise duty to give an overall boost to the sector," Consumer Electronics and Appliances Manufacturers Association (CEAMA) President and Panasonic (India, South Asia) Managing Director Manish Sharma told PTI.

Also pitching for speedy implementation of GST, Sharma said, "Once fully implemented, GST will create a single, unified Indian market and will diminish the multiple layers of indirect taxation that prevails at present."

Agreeing with Sharma, Whirlpool of India VP - Corporate Affairs & Strategy, Asia South, Shantanu Das Gupta said: "All sectoral indicators have shown that growth has stifled the appliance

"The increase in excise duty has added to our woes. What we seek from this are measures that will stimulate demand."

In the interim presented last February, the UPA government had cut excise duty on consumer durables and automobiles in order to boost the two sectors that were struggling due to the economic downturn.

In June last year, the new government led by Prime Minister Narendra Modi extended the excise duty concessions by six months to December 31, 2014.

The auto wanted further extension of the duty relaxation but the NDA government decided against it.

Last month, consumer durable firms, including Haier, Whirlpool, Panasonic, Godrej Appliances and Daikin, had announced increase in prices of their products by up to 5 per cent, following the withdrawal of excise duty sops, coupled with high input costs.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, February 12 2015. 14:54 IST