The prices of LCD, LED TV are set to get cheaper as the government halved import duty imposed on a key component of the TV panel called 'open cell' to 5%.
The prices of LCD, LED TV are set to get cheaper as the government halved import duty imposed on TV panels to 5%. A Finance Ministry notification issued on Friday said that the government has brought down customs duty on TV panels by 5%. The import duty has been halved on a key component of the TV panel called ‘open cell’. The government said that it was in “public interest” to reduce the duty on open cell for use in the manufacture of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels.
In Budget 2018, the Finance Minister had imposed a 10% import duty on them, following which Samsung and Pansonic hiked prices of TV by up to 6%, while others had the plan to hike it for new models to be rolled out in April. With the cut in import duty, it is understood that it will not only drive the affordability of TV but also help TV manufacturers in India.
It was also reported that a lower import duty on TV panels will also boost domestic manufacturing of TV and create jobs. India’s TV market had been facing a rough time for a couple of years and according to industry experts, import duty hike on TV panels left no choice but to increase the retail price of TV sets, which, in turn, would have hurt the demand further.
Besides the hike announced in the Budget, the government through a notification in December hiked the import duty on television sets, LED lamps, and a few other electronic items in order to push domestic manufacturing. The customs duty on TV sets was hiked by 20%, imported smartphones by 15 percent and LED lamps by 20% last December.
The duty was doubled on imported microwave ovens by 20%. It was believed that such an action by the government will encourage local manufacturing, and push latent demand for ‘Make in India’ products. The move was expected to encourage foreign players to manufacture products in the country as the prices escalate, especially for TV sets.
Apple has increased the prices of many of its iPhone models by up to Rs 3,720 after the duty hike. On video recording equipment, as well as TV cameras, customs duty was hiked to 15% from 10%. On set-top boxes, the import duty was doubled to 20%.