You need not envy your neighbour anymore. That sleek liquid crystal display (LCD) television set you yearned for could soon be up on your wall.But, digital TV viewing may become a tad expensive.
The Budget has reduced basic customs duty on LCD panels, which are imported by consumer electronic companies from Korea, China or Japan, but imposed a customs duty of 5% on set top boxes (STBs) for television broadcasting, which will lead to an increase in price.
Consumer electronic majors Samsung and LG said customs duty decrease on LCD modules will boost indigenous manufacture, and lead to a reduction in LCD TV prices later. Said Samsung India deputy managing director R Zutshi “This should result in bringing down the manufacturing cost of LCD TVs in the country and further fuel growth of this segment. We also welcome the abolition of FBT which should help companies in terms of the consumer promotions they extend for consumers.”
Moon B Shin, MD LG Electronics, said: “Allowability of expenditure on in-house R&D at the rate of 150% to all manufacturing entities will encourage technology development, and will reduce the import of know-how .” As far as direct to home (DTH) industry is concerned, both Tata Sky and DishTV said they would be passing on the hike to consumers. Salil Kapoor, chief operating officer DishTV, said: “The additional burden of 5% tax on STB will hinder growth and will discourage the DTH industry from expanding business. This tax hike will be passed on to customers.”
“Increase in customs duty will add to the cost of digital television services for consumers at large. The DTH industry is one of the most heavily taxed areas in the media and entertainment space,” said Vikram Kaushik, MD and CEO Tata Sky. But the duty on STBs may be beneficial for local manufacturers like Videocon. Said Videocon chairman Venugopal Dhoot: “The custom duty of 5% on settop boxes will help Videocon as it protects local manufacturers. The market for set-top boxes is growing strongly and we are looking to cater to this demand from our Aurangabad facility” .
Source : The Economic Times