India will be a substantial increase in import tariffs, LED industry is also affected

In February 1st this year, India's finance minister Arun Jaitley has submitted the fiscal year 2018-2019 budget proposal to parliament. In the proposal, plans to raise tariffs on auto parts, mobile phone, lithium batteries, watches, toys and other products, but also the social welfare surcharge charged in the basic tariff based on 10% (Social Welfare Surcharge), intended to promote the development of manufacturing industry, to create more jobs for the country." The new deal from April 1st onwards.

What are the 1. main products affected?

Mobile phone rate from 15% to 20%;

Some mobile phone accessories (battery, charger, adapter) rate from 10% to 15%; part of the LCD/LED/OLED panel and TV assembly rate from 7.5%-10% to 15%;

Some auto parts, including spark ignition engine, compression ignition engine, crankshaft, electric ignition equipment etc. the tax rate from 7.5% to 15%;

The tax rate from 15% to 20% artificial jewelry;

10%20%

Watches, smart watches and wearable devices tax rate from 10% to 20%;

The tax rate from 10% to 20%;

The tax rate from 10% to 20% footwear;

The tax rate from 10% to 20% parts of toys;

Peanut oil, safflower oil and other edible oil tax rate from 12.5% to 30%, refined edible oil tax rate from 20% to 35%.

2. what is the social welfare surcharge (Social Welfare Surcharge)?

According to the social welfare surcharge charged, it will replace the additional education tax (Education Cess), intermediate and higher education surcharge (Secondary & Higher, Education Cess).

Additional education tax before (Education Cess) a 3% tax to the imported goods; proposal passed, it is 10% of the social welfare surcharge. At the same time, gasoline, diesel oil, high performance silver, gold to enjoy social welfare surcharge for the preferential tax rate of 3%. Before the additional education tax exempt imported products, still can be exempt from social welfare surcharge.

What is the 3. India purpose for doing this?

The financial plan requires a substantial increase of import tariffs, is actually aimed at the China manufacturing ", aims to further strengthen the India government proposed the" made in India "(Make in India), the" digital India "(Digital India) strategy, turning India into a big manufacturing country.

According to statistics India business information statistics department and the Ministry of Commerce of India, India in 2016 and China trade amounted to $69 billion 620 million, Chinese maintain a surplus of $51 billion 690 million in India. In April last year to October, India's trade deficit reached $36 billion 730 million. Chinese to become India's largest trading partner and the largest source of goods in china. India China export products to high value-added products, and exports of India Chinese products are mostly low value-added products.

Because India is heavily dependent on Chinese products, coupled with the huge trade deficit with China, so the India hopes to raise tariffs on imported goods, promote India manufacturing, to protect domestic enterprises; at the same time, forcing some manufacturers to set up factories in mainland India, in order to reduce the cost of tariffs.

According to statistics, in the first two months of 2018, India anti-dumping investigations initiated by China has as many as 8, India became the first country of anti-dumping. (Editor: LED James)

LED more information, please click on the LED network or the WeChat public account (cnledw2013).