Interaction | February 2015
Require relaxation of 5% on ED for energy efficient products
Dinesh Aggarwal, Jt. Managing Director, Anchor Electricals Pvt. Ltd
What are the opportunities you see for your sector in 2015?
Initiatives like National Electronics Mission and installation of electronic hardware technology parks cast a headlight to the roadmap of industry expansion. In addition to these, a 2 per cent reduction of Central Excise duty further supplements the growth prospects. One of the core focus areas of the government is rapid infrastructural development in rural areas especially on electrification projects. These will certainly create a demand for essential consumer electrical products in the rural market.
What are your suggestions for the Finance Minister?
We at Anchor would suggest that the budget should be inclined towards stimulating investments and advance the business environment through stable and fair tax policies. A relaxation up to 5 per cent on excise duty on manufacturing of energy-efficient products would stimulate the growth of this industry.
Will the unrolling of GST make any difference to your operations?
A relaxation of GST would certainly make a huge difference to our industry. Increased license fee and irrational tax structure is a major hindrance to the growth of the industry. A uniform GST would lower the transaction cost leading to a decrease in the overall cost of production. Further, the slow passed implementation of GST increases compliance burden among consumers. It increases ambiguity amongst them and evades a transparent tax system.