Budget 2023: TVs made in India will get cheaper by up to Rs. 3,000 after tax cuts on imported parts

Budget 2023: TVs made in India will get cheaper by up to Rs.  3,000 after tax cuts on imported parts

Locally made television sets will be made cheaper by up to Rs 3,000 with Finance Minister Nirmala Sitharaman on Wednesday announcing a reduction in the Basic Customs Duty (BCD) on imported parts from 5% to 2.5%.

Reducing the customs tax on open cell parts will effectively help reduce the price of TVs by around 5%, according to some industry players.

Open cell panels account for over 60-70 percent of the manufacturing cost of LED TV sets. Most TV manufacturers import these panels.

In her budget speech, Finance Minister Nirmala Sitharaman said “…to promote value addition in television manufacturing, I propose to reduce the basic customs duty on open cell parts of TV panels to 2.5 percent .” The president of the Association of Manufacturers of Electronics and Home Appliances (CEAMA), Eric Braganza, said that this measure will help to increase the domestic value added and the growth of the sector.

“This is a good step for the industry and an encouragement for domestic manufacturing. Most manufacturers will extend the benefits to consumers,” he said.

Super Plastronic, which has licenses to international brands such as Blaupunkt, Thomson, Kodak and White-Westinghouse – for the Indian market, said a reduction in the customs duty to 2.5 percent would reduce the final price of the TV by 5 percent.

“This is a welcome move by the Government of India to reduce the customs duty on the open cell to 2.5 per cent, we will pass this benefit on to customers. Television prices can drop as much as Rs 3,000 on larger screens,” said the CEO and founder of SPPL Avneet Singh Marwah.

Sony India Managing Director Sunil Nayyar said, “The recently announced reduction in basic customs duties for various imports of television components is a major boost for the television industry. We welcome this budget in its entirety and We are optimistic about our future business plans in India.” According to him, this budget should drive more consumer demand and spending in various sectors, especially with more disposable income in consumers’ hand due to significant tax breaks.

Panasonic Life Solutions India President Manish Sharma said a tax cut for the middle and upper class meant more money was in the hands of taxpayers, thus stimulating demand and boosting consumption.

“It is encouraging to see a reduction in customs duties for inputs/parts of certain electronic items such as Li-Ion batteries, TV and camera lenses. This will improve the feasibility of improving reverse integration and subsequently enabling local manufacturing of electronics “, he said. he said.

President of Haier Appliances India, Satish NS, said this cut will not only benefit manufacturers, but will also be a lifestyle change for many consumers as they can buy televisions at an affordable price.

He also applauded the government’s plans to establish three centers of excellence for artificial intelligence to enable ‘Make AI in India’ and ‘Make AI work for India’.

“This measure will benefit the industry and encourage the early adoption of AI in the country,” he said, adding, “with the advent of AI in the home appliance and electronics segment, it has opened up a wide range of possibilities, given the enormous size of the electronics market.” Previously, the government had canceled the tax on open cells for one year in September 2019. However, it was re-imposed a year later, in 2020.

Videotex International, the owner of the Daiwa and Shinco brands and also an OEM/ODM Smart TV maker for Realme, Toshiba, Lloyd, Compaq, BPL, Hyundai and over 15 of India’s leading brands, said the tax break is a “true game”. moment of change” for the industry.

“Prices of LED TVs are expected to drop by 1 to 1.5 percent and the benefits of this will be passed on to customers. This will significantly boost the domestic television manufacturing industry and help it compete with global brands. This decision is very important. We are waiting for one”, said the international director of Videotex, Arjun Bajaj.

According to the latest report by Counterpoint Research, India’s smart TV market saw a 38% YoY growth in shipments during the July-September quarter.

Global brands led India’s smart TV segment with 40% share, followed by Chinese brands with 38%. While Indian brands showed the fastest growth, doubling their share to 22 percent of total smart TV shipments, the report said.

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