Import duty imposed on flat TVs
Zee Media Bureau/Aarti Katira
In this pessimistic environment where rupee is sliding, touching a new low every day, there is some respite and reason for the domestic TV manufacturers to cheer up. The government has announced that TVs are no longer a part of duty-free baggage and 36.05 percent import duty has been imposed.
According to consumer electronics companies, this measure will lead to increase in demand for domestic flat panel televisions. These domestic companies have invested around Rs 1,500 crore in manufacturing of LCD and LED TVs.
Companies are hoping that this new measure will lead to increase in their sales and manufacturing of newer products. “Earlier, TVs used to be a part of duty-free baggage, but the recent government measure is very welcoming for the domestic TV companies as it will lead to further increase in demand for products from domestic companies,” Venugopal Dhoot, Chairman, Videocon.
For instance, a 40-inch plasma TV could be bought for Rs 35,000 in Thailand. By adding custom duty, the price goes up to Rs 48,000.
Same TVs are now available in domestic markets for Rs 45,000-Rs 48,000.
According to consumer electronics companies, there is an increase in demand of LCD and LED TVs.
Last year, the demand for these TV sets was around 37 lakh units. It is estimated that by this year end the count might reach at 50 lakh units.
According to experts, around 10 lakh units came through duty free baggage last year. Now with the introduction of this government measure, a similar amount will be added to the domestic market.
This move will not only benefit domestic TV companies, but also the consumers as they used to get these products from duty free market without any guarantee or warranty.
With buying the products from domestic market, consumers will be able to solve all their grievances.