Govt scraps 5 per cent import duty on open cell TV panel used in LED TVs

According to the Finance Ministry, “open-cell, (15.6 inches and above), for use in the manufacture of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panel”, would attract nil duty. The open-cell panel is an important part of TV manufacturing and covers more than half the cost of the unit.

Besides, the government has also waived custom duty on import of Chip on Film, Printed Circuit Board Assembly (PCBA) and Cell (glass board/ substrate), which are used to manufacture open cell TV panels.

The announcement has come just ahead of the festive season sales and would positively impact the sales of LED TV panels. The television industry has welcomed the government’s decision to scrap the customs duty.

Panasonic India and South Asia President and CEO Manish Sharma said, “industry welcomes this decision. This will ease the cost pressure on TV and the benefit once passed to the consumers will help the industry accelerate demand.”

Sony India said the reduction in the duty would help enhance its efforts to increase domestic manufacturing of its TV range.

“The company has long been committed to the government’s Make in India initiative. This withdrawal of duty on open cell provides a strong boost to local manufacturing and will help us further enhance our efforts in this direction,” said Sony India Managing Director Sunil Nayyar.

Indian TV market, which is estimated to be around Rs 22,000 crore, is facing tough times due to slow demand. Manufacturers like Samsung had shifted TV production lines to Vietnam using the Free Trade Agreement to import it.