Calcutta, July 10: Finance minister Arun Jaitley chose to eliminate basic customs duty on LCD and LED panels below 19 inch — components that go into the production of certain categories of television sets — raising hopes of a lower cost to consumers.
The move, aimed at promoting domestic manufacturing, will open up avenues for manufacturers to penetrate markets beyond cities through smaller sets.
Jaitely has proposed to exempt colour picture tubes from basic customs duty to keep CRT televisions, a fast shrinking category in the market, within the reach of economically weaker sections.
Steps to correct an inverted duty structure plaguing indigenous manufacturers of IT hardware have been taken with special additional duty of 4 per cent being exempted on all inputs or components used in the manufacturing of desktops, laptops and tablet computers.
Noting that there is a growing demand for electronics that required a boost in domestic production and reduced dependence on imports, an imposition of education cess on imported electronic products has been proposed to make locally produced goods competitive with those imported.