 "Govt halves import duty on LCD/LED TV panels to 5% to boost domestic biz")
The government has halved customs duty on 'open cell' used in the manufacturing of LCD and LED television panels to 5 per cent, a move intended to boost domestic manufacturing.
"Open cell (15.6 and above) for use in the manufacture of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels" would attract 5 per cent customs duty, the Central Board of Excise and Customs (CBEC) said in a notification.
Experts said the move is an extension of domestic manufacturing push by the government after it announced in Budget the hiking of import duty on LCD/LED TV panels to 15 per cent.
"The customs duty of 5 per cent on open cells used in the manufacturing of LCD panels is lower than other items mentioned is Chapter 8529, this could ostensibly be to encourage manufacturing of such panels in India," MS Mani, Senior Director at Deloitte India said.
He said other items in the same chapter are either taxed at 7.5 per cent or 10 per cent.
Abhishek Jain, Partner, EY said the lowering of the customs duty rate on open cells used for manufacturing LCD and LED panels from 10 per cent to 5 per cent should boost domestic manufacturing of such panels vis-a-vis direct imports.
In Union Budget on February 1, the government had doubled the customs duty on imported LCD and LED TV panels to 15 per cent from 7.5 per cent.