New Delhi: Computers, LCD and LED TVs below 19 inches, tablets, water purifiers using reverse osmosis technology manufacturing in the country are some of the items that are set to become cheaper after Union finance minister Arun Jaitley announced reduction in different taxes and duties on these.
Consumers, however, may have to shell out more money to buy mobile phones as the government has proposed “education cess” on imported electronic products to provide parity between domestically produced goods and imported goods. Mr Jaitley also proposed to impose 10 per cent basic customs duty on specified telecommunication products that are outside the purview of the Information Technology Agreement.
Mr Jaitley announced that tablets, computers, LCD, LED TVs, CRT TVs will cost less in India. Customs duty for LCD and LED computer display panels below 19-inches will now be zero to boost their manufacturing. Mr Jaitley said the government will exempt all inputs/components used in the manufacture of personal computers from 4 per cent special additional duty and impose education cess on imported electronic products to provide parity between domestically produced goods and imported goods. The education cess for all taxpayers will be 3 per cent in 2014-15.
Experts feel that the imposition of education cess on imported electronic products will cause a 7 to 8 per cent increase in prices of smart phones as there is hardly any manufacturing that is done in the country.
The minister further said, "Low-end television sets would be cheaper now. Cathode ray TVs are used by weaker sections who cannot afford to buy more expensive flat panel TVs. The duty concession will help revive manufacturing of TVs in the SME (small and medium enterprise) sector and create employment opportunities".
