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    Govt to impose 5% customs duty on import of open cell for televisions from Oct 1, 2020

    Synopsis

    Government officials said that price increase due to this duty will not be more than Rs 250 per TV, dismissing claims of substantive price hikes being put forth by the industry.

    Agencies
    The government feels that imports of television parts will rise, from Rs 7500 crore in a year, as imports of fully made TVs is curbed.
    India will impose a 5% customs duty on imports of open cell for televisions from October 1, 2020, as the government seeks to increase local manufacturing and value addition.

    Government officials said that price increase due to this duty will not be more than Rs 250 per TV, dismissing claims of substantive price hikes being put forth by the industry.

    “For how long such import duty sops can continue? The TV industry is well aware of the basic tenets of phased manufacturing. The sop was offered for a limited period of one year in anticipation that the industry would build capacity for manufacturing critical components in India," a finance ministry official said.

    "Leading brands are importing Open Cell for a basic price of Rs. 2700 for a 32 inch and about Rs. 4000 to Rs. 4500 for a 42 inch television. The impact of 5% duty on Open Cell would, thus, not be more than Rs 150-250 for a television," the official said, terming claims of price hikes by companies as misleading.

    Television makers have argued that prices of fully built panel have risen by 50% and customs duty of 5% on open cell - a major component for TVs - would lead to increase in sale prices by a minimum of Rs. 600 for a 32 inch television and Rs. 1200-1500 for a 42 inch TV and even higher for a large screen televisions.

    The customs duty exemption given to open cell for a period of one year will end on September 30, such that industry can move towards value addition from mere assembling, but that has not taken place.

    Domestic industry should invest more in local manufacturing since it has been given adequate protection with 20% customs duty on imports of fully made TVs since 2017 and certain categories of TV imports have been put in the restricted category since July this year, a second official said.

    He noted that till last year televisions worth Rs 7000 crore were being imported.

    "This cannot go on for long as assembly of television does not entail any significant value addition. Deepening of value addition in the domestic market must happen in phased manner,” he added.

    The government feels that imports of television parts will rise, from Rs 7500 crore in a year, as imports of fully made TVs is curbed.

    "Open cell capacity building in India would also help making panels for mobile phones which is a huge market," the second official added.
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    3 Comments on this Story

    Vk Singh35 days ago
    Shame , shame Modi.
    Chandrahash Rushi35 days ago
    What is going to be cheap? Life of the farmers, middle class umemployed youth, poor persons life at advantage of rich capitalists corny capitalists
    Anil Kulkarni36 days ago
    MNCs and the Indian corporates think that together they can continue to bully and push around the Indian Central Govt. They don't get the signal correct even now, what the present govt can go ahead with, they should view the suggestions given by the Central Govt from time to time on "make in India" objective.
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