Mobile phone industry seeks tax rationalisation, clarity on export incentive cut

IT hardware and mobile manufacturers on Monday sought clarity over recent reduction in export incentives and demanded rationalisation of tax structure, including GST rate on handsets, during a pre-Budget meet with Finance Minister Nirmala Sitharaman.

According to the India Cellular and Electronics Association (ICEA), reduction in export incentives will lead to massive job losses.

“Many have emphasised that some schemes that are on the anvil can be brought in quickly like some incentives for large-scale manufacturing. There are a number of incentives,” Electronics and IT Secretary Ajay Prakash Sawhney said after the pre-Budget meeting.