Budget 2012: Semiconductor industry voices concern over hike in service tax, excise duty

BANGALORE: India's semiconductor industry expressed concern over the increase in service tax and excise duty proposed in the Union budget.

"...we view with concern the increase in Service Tax and increase in excise duty on certain items which are traditional consumers of the electronics and components industry in India", India Semiconductor Association (ISA) President P V G Menon said. ISA has over 175 members - both domestic and multinational enterprises.

We would have liked to see some initiatives being announced for the promotion of the domestic Electronics Design and Manufacturing (ESDM) industry, which has a potential to grow to USD 400 billion by year 2020, he said.

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We are also looking forward to the final policy as well as implementation details of the new National Electronics Policy as well as the National Telecom Policy as related to ESDM sector, Menon added.