Mait represents leading IT hardware companies like Dell, Lenovo, HP, Acer, Cisco, HCL Infosystems and Intel etc.
The government in budget 2015-16 had exempted mobile phone and tablet PC manufactures in India from payment of customs duty and excise duty on procurement of all goods required for manufacturing, MAIT said in it submission.
To boost local manufacturing of mobile phones and tablets, the government in Budget increased duty benefits for domestic producers of these electronic items.
Excise duty structure for mobiles handsets was changed to 1% without CENVAT credit or 12.5% with CENVAT credit, which gave domestic manufacturers a benefit of about 11% over imported phones.
The current fiscal year saw investments from manufacturing giant Foxconn in the country while many other mobile phone companies like Gionee, Xiaomi, Lava, Karbonn, HTC, Datawind, started production of their handsets locally.
The industry body said government has removed special additional duty — a tax imposed to provide cushion from products purchased at zero duty — from components used for manufacturing computers, which compelled domestic manufactures to use imported motherboards as they were cheaper.
To encourage local production of computers, Mait has requested government to exempt all the inputs, except populated Printed Circuit Boards, required for use in the manufacture of ITA bound goods from SAD.
“Likewise, any new units commencing production on or before March 31, 2016 may also be bestowed with central excise exemption for a period of 15 years. This will give the manufacturing sector the required boost to compete with traders,” Shirpurwala said.