The Consumer Electronics & Television Manufacturers Association (Cetma) has opposed the levy of excise on the maximum retail price of television sets by bringing the item under the purview of Section 4-A of the Central Excise Act, 1944.
While the intention of the government needs to be commended, the preparatory exercise for a smooth implementation seems to have ignored certain distinctive features of the consumer electronics and appliances industry, the association said yesterday. (September 30).
The levy of excise on MRP of television sets came into effect on September 16.
With the government keen on further widening the scope of Section 4-A to cover washing machines, refrigerators and other appliances, it needs to immediately address the grey areas left uncovered by its notification, said the association.
The toothpaste industry, which attracts excise duty as well as sales tax at the rate of 8 per cent, has been given an abatement of 30 per cent on MRP, while television sets, which attract 18 per cent excise duty and 13 per cent sales tax on an average basis, have been allowed the same 30 per cent abatement, says the association.
This indicates that factors and pressures other than the parameters listed by the government have gone into fixing the abatement, said a statement issued by Cetma.
The association has also demanded amendments to the standards of the Weights & Measures Act, 1976, and emphasised the need to amend the Customs Act to levy countervailing duty based on MRP.
