In a bid to facilitate consistent growth of security industry @ of 25% for next few years in view of its importance, The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has advocated the need for reduction in import tariffs on security related electronic products by at least 50%.
Import duties on most of the electronic security gadgets currently hovers around 37% and those telecom equipment and power conditioners, import duties are around 12½ % which make installation of security gadgets an expensive exercise.
The ASSOCHAM, therefore has stressed urgent need to slash import tariffs on electronics products to 18.5% from over 37% and 0% on those telecom equipment and power conditioners to strengthen security nets in telecom and private sector and in general in other areas too.
ASSOCHAM President, Swati Piramal in a representation to Ministries of Finance and Home Affairs has stated that the government should not be unduly concerned about the revenue loss in terms of import duty tariffs on security products and gadgets by 50% through a notification as India and its business can no longer afford to compromise on security.
The security industry has been growing @ 25% for the last couple of years and projected to grow mani fold in next 4-5 years to meet up with its security requirements. The size of security business in India is currently estimated at Rs.22,000 crore which according to ASSOCHAM may cross Rs.50,000 crore in next few years.
About half the size of security business, the imports of security products components and gadgets comprise nearly 30-35% and one can imagine the burden on domestic security business through security gadgets imports. The ASSOCHAM also feels that in subsequent years, the import tariffs should fall by less than 20% to enable India to help its citizen access security at affordable cost.
ASSOCHAM also said that with falling import tariffs on security component, India would be able to push up its security manufacturing on its own and with technological innovations gaining faster pace, fool-proof security could be ensured to help India remain immune to any possible security threats of future.
The ASSOCHAM also holds that since security is becoming a priority even in industry and domestic business are widening their security budget, import tariffs rationalization on security gadgets and components are urgently called for.
The Chamber has also emphasized that sub–assemblies to be treated at par with finished products to promote Electronic Manufacturing services (EMS) an emerging area with huge potential.
All the inputs to the components industry should attract Zero custom duty so as to enable domestic components industry to compete with the imports, ASSOCHAM has suggested.
It is further suggested that similar to the dispensation already given to the inputs of telecom equipment – permitting them to be imported at Zero Custom duty – by further extending the Zero duty imports under Customs Notification Nos. 29 & 25 dated 01.03.2005 to the inputs required for the manufacture of components and other inputs of WTO-ITA-1 products.
Source: Pressreleasepoint
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written by kamera sistemleri, January 23, 2011
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