Toy units plan to improve industry linkages

A series of 'Toy Biz Business of Play' exhibitions cum buyer-seller meet has been planned by the Toy Association of India (TAI) in an attempt to build marketing linkages between the manufacturers, wholesalers, distributors, retailers, component and raw material suppliers.

Three such fairs have been held in New Delhi, and Mumbai while the forth one has been scheduled in Kolkata. The emphasis this time is on importers from Nepal and Bangladesh and buyers from north-eastern states.

As many as 70 large manufacturers and distributors from all over India will be displaying their latest and innovative toys and games at the fair.

Talking about the industry, TAI officials said the toy industry was around Rs 1,800 crore in size. As much as Rs 1,000 crore was contributed by the unorganised players.

"The segment, with reduction of 10 per cent customs duty for imports from China, has been badly hit lately and there has been lot of apprehension among manufacturers. This has led them to postpone their investment plans, while most of them taken a wait and watch strategy," the officials said.

Tai is also in the process of approaching the West Bengal state government for a reduction in sales tax of toys which at present attracts a eight per cent sales tax and a 15 per cent surcharge on toys, while electronic toys attract a 12.8 per cent sales tax along with a 13.8 per cent surcharge.

"We are in the process of asking the government for waiver of any tax on toys that costs less than Rs 100, as has been done by the New Delhi state government. While toys costing above Rs 100 should attract a uniform sales tax "" which the government is free to levy, which however was four per cent in Delhi," he said.

Commenting on the tax structure under VAT, the official said, toys are likely to attract a 12 per cent tax, which according to them was very high.

He also said that TAI was in the process of lobbying with the government for reducing the tax structure under VAT.