LCD TV Panels to Attract Zero Import Duty
Recently the Indian government announced that it was eliminating the import duty on LCD panels of any kind. This would be welcomed by the TV industry as till recently TV panels were attracting 5% import duty, an amount which had been reduced from 10% in 2009. In making this cut the government wants to encourage domestic assembly as part of its manufacturing policy. Finished TVs will continue to be subject to 10% import duty, as will other TV parts.
TV costs will be impacted due to an increase in the excise duty on white goods and electronics from 10% to 12%. However, the overall impact for the LCD TV industry will be positive in cases in which an SKD is imported and final assembly is done in India. India reduced the excise duty during the global economic crisis in 2008 in order to boost consumption through lower input costs, and then increased it in 2010. The government now believes that the extra support is not needed by the industry, as recent economic indicators show that special support can be done away with.
Posted by Indrajit Ghosh in DisplaySearch, FPD Industry News, TVs on March 27, 2012
