Tuesday, 27 August 2013

TV makers hope new levy on panel imports will boost sales

With the imposition of 36 per cent duty on imported TVs as baggage becoming effective from 26 August, manufacturers, including Panasonic, Sony and Samsung, are hoping that their local sales in India will grow in double digits.
“This will result in expanding profit margins and will lead to better profitability,” Panasonic India Managing Director Manish Sharma said.

The jump in terms of volume for the industry in India will be approximately 1.5-2 million units and the value would be around Rs 400 crore approximately, he added.
Expressing similar views, another Japanese manufacturer, Sony said the local consumption will increase, although the total market size would remain the same.
“The total market definitely remains the same... At least 10-15 per cent panels used to come through this route. This would be naturally now converted in the local consumption,” said Sony India Sales Head Sunil Nayyar.
According to the South Korean manufacturer Samsung, the levy was a “relief for the industry” and would boost the local demand.
“This enhanced local demand should boost domestic manufacturing through better capacity utilisation, enhance local employment as well as lead to better tax collections,” Samsung India Dy Manging Director R Zutshi said.
According to Consumer Electronics and Appliances Manufacturers Association (CEAMA), 3-3.5 million flat panel plasma TV sets, out of a total demand of 8 million flat panels, are brought inside the country either through free baggage allowances or concessional rate of duties under FTA.
“Now the levy would lead to increase the domestic production of panels by 25 per cent,” said CEAMA Secretary General Suresh Khanna.
Earlier this month, the government in a bid to rein in CAD had banned duty-free import of flat screen plasma TV television and imposed 36.05 per cent levy.
Ending more than a decade-old concession, the Revenue Department had issued a notification that amended rules so as to “disallow import of flat panel (LCD/LED/Plasma) television as part of free baggage allowance” with effect fr0m August 26.

Source:
http://cablequest.org/news/national-news/item/3077-tv-makers-hope-new-levy-on-panel-imports-will-boost-sales.htmlSource: http://cablequest.org/news/national-news/item/3077-tv-makers-hope-new-levy-on-panel-imports-will-boost-sales.html

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