Samtel Colour Seeks Duty Cut On CPTs

New Delhi, December 22: | Updated: Dec 23 2002, 05:30am hrs
Samtel Colour has made an appeal to the government to create an environment where its input is zero and duty on colour picture tubes (CPT) is made 14-15 per cent, the companys vice president Sunil Kakaria told FE. The current customs duty on CPT is 20 per cent.

Recommendations and observations by the Consumer Electronics and Television Manufacturers Association (CETMA) included the view that customs duty on CPT and colour televisions (CTV) had been kept at par, which was unfair to the television industry. It further stated that no other CTV component was subject to this type of over-protection policy, and that the growth of the CTV industry was highly dependent on the price of CPT, which was the single critical and costly component weighing heavily on the pricing of CTVs. It is a myth that CPT has duties on par with the CTV industry, said Mr Kakaria, we have huge power costs and duty on capital goods, so we are not sure what CETMA seems to be suggesting. CETMA, in response to the two tier customs duty suggested by the task force on indirect taxation headed by Vijay Kelkar, has recommended that customs duty on CPT be brought down to 10 per cent. In their view, The reduction in duty will lead to buoyancy in revenue, due to increased sales of CTVs. We are asking to make out inputs 0 per cent and duty 10%, said Mr Kakaria, since CPT is a capital intensive industry, there are duties everywhere the EU has 14.2 per cent duty on CPT and it manufactures at an overwhelmingly higher capacity than India.