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From Oct 1, 5% duty on import of key part for making TVs

While the industry has estimated price escalation by Rs 600-Rs 1,200 per unit depending on the size, sources in the government have said that the impact wouldn’t be more than Rs 200 for a TV set.

Customs duty exemption, TV panel manufacturing, TV component, econommy news, Indian express newsThe sources also said that domestic TV manufacturers were using the 5 per cent customs duty on open cell as an excuse to revise prices upwards by claiming that manufacturing capacity is still not available within the country. (Representational)

With the end of Customs duty exemption on open cell — a key component in TV panel manufacturing — from October 1, TV manufacturers are expected to start making the product in India leading to a reduction in imports of television parts that are Rs 7,500 crore a year, Finance Ministry sources said. The open cell will attract 5 per cent from next month.

This exemption was given a year ago to the industry as it had sought time to build domestic capacity for open cell. However, TV makers have said that domestic manufacturing capacity isn’t adequate yet to curb all imports, and the prices of TVs is likely to rise with the 5 per cent customs duty.

While the industry has estimated price escalation by Rs 600-Rs 1,200 per unit depending on the size, sources in the government have said that the impact wouldn’t be more than Rs 200 for a TV set. The sources also said that domestic TV manufacturers were using the 5 per cent customs duty on open cell as an excuse to revise prices upwards by claiming that manufacturing capacity is still not available within the country.

Government sources have also argued that such exemptions can’t continue when domestic manufacturers are already provided adequate protection of import with 20 per cent Customs duty on TVs since December 2017. FE

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First published on: 21-09-2020 at 05:15:52 am
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