Around Half Of Import Duty Reduced By Government On TV Panel
The government reduced the import tariff by 10% to 5% on a key component which is a TV panel. Relieved by this step, TV manufacturers say that their costs will be decreased and jobs related to manufacturing will increase. On this most popular part of the TV panel ‘Open Cell’, 10% duty was imposed in this budget. After this, companies increased retail prices of TVs by 5 to 6%. At the same time, they expressed fear that new jobs would be affected due to increased duty.
Ravinder Zutshi, Senior Director, LG India, told, “It is a progressive and trustworthy step taken by the government. There will be a large scale panel production in the country. The cost of making the TV will not increase and we hope that the sale of TV will also be boosted.”
Manish Sharma, CEO and President of Panasonic India, said that this move will strengthen the government’s determined ‘Make in India’ program. He said, “This will develop new capacity for TV industry in the country. Increasingly, the Consumer Electronics Industry will be able to move towards the manufacturing ecosystem. In addition, new jobs will also be created. Consumer Electronics and Appliances Manufacturers Association (CEAMA) requested a removal of the duty through a petition to the government. Moreover, other than the open cell, the government imposed a 15% import duty on the fully developed panels.
Companies say that due to the reduction of duty on the Open cell, TV producers will now assemble in the country itself. An official of the industry said on condition of anonymity, “About 90% of the panel’s cost is attributed to the open cell. Due to the reduction of duty, many companies will be encouraged to enclose panels in the country itself.