Various industries continue to submit representations to the Union Ministry of Finance ahead of the Union Budget 2022 scheduled on 1st February 2022.
Many industry associations have made representations justifying their requests from tax rate cuts to requesting special schemes. Some of the industry demands are listed below:
Medical Technology Association of India
The MTaI has written to the FM asking to reduce GST on cold medical chains and medical devices. It considers that the move will expand the healthcare sector and enhance patient accessibility. Further, the organisation wants the customs duty on medical devices and equipment to be reduced to 0-2.5%. Additionally, the budget must improve the expanse of health insurance in India and upskill the healthcare workers, stated Chairman Shri Pavan Choudary.
Federation of Automobile Dealers Association
The FADA has made representations before the government to provide benefits to individual assessees paying income tax to allow depreciation on their vehicles as an expense. Further, they have requested for the GST Council to relook into the GST rate on two-wheeler automobile sales. Also, they expect GST rates to be reduced for used cars to 5%. The association further suggested corporate tax cuts for businesses formed out of LLP, proprietorship and partnership firms.
Gems and Jewellery Export Promotion Council (GJEPC)
The Jewellery and Gems Council has urged the government to reduce the import duty on gold to 4%, including cut and polished diamonds. They have also has asked for a cut in duty on cut and polished precious and semi-precious gemstones to 2.5%.
They want the government to amend the Income Tax provisions to permit the sale of rough diamonds in the Special Notified Zone of Mumbai. They need clarification on the equalisation levy for B2B international diamond auctions and extension to the sunset clause for SEZ units.
Federation of Hotel & Restaurant Associations of India (FHRAI)
The federation is hoping for an extension to the moratorium by a minimum of one year. These must be available for loans taken under the Emergency Credit Line Guarantee Scheme (ECLGS). They have also demanded a resolution framework for the hospitality sector for a loan restructuring. Additionally, the government has requested to notify the Rs.60,000 crore loan guarantee scheme.
Indian Steel Association
The industry body has submitted its wish list to the Ministry. They have requested to reduce the customs duty to nil for coking coal, SS scrap, and nickel, citing a shortage in raw material. It has also sought a GST levy on petrol, oil, lubricants and natural gas since companies cannot avail any input tax credit against these materials. Further, they want the ‘Lesser Duty Rule’ or LDR to be removed because it is too old.
The association also wants the Steel Import Monitoring System (SIMS) linked with the ICEGATE portal of the Central Board of Indirect Taxes and Customs (CBIC). Moreover, it has asked the government to restore the Countervailing Duties (CVD) and Antidumping Duties (ADD), which were earlier suspended.
India Cellular and Electronics Association
The ICEA wants the government to rationalise taxes on materials used for mobile phone components while also revisiting customs duty on high-end phones.
The previous Budget called for an increase in duty tariffs on inputs used to make mechanics, connectors, PCBA, power banks, camera modules, chargers, and wireless stereo leading to the degrowth of many businesses. Therefore, the association has urged the government to look into the matter.
Further, they hope to see the value addition norms reduced to 5% so that the exporter can easily import under the Advance Authorisation Scheme. They want the government to withdraw all duties on inputs to camera modules for the industry to develop.
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Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.