The government has halved customs duty on ‘open cell’ used in the manufacturing of LCD and LED television panels to 5%, a move intended to boost domestic manufacturing.
Open cell
“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% customs duty, the Central Board of Excise and Customs (CBEC) said in a notification. Experts said the move was 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%.
“The customs duty of 5% 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,” M.S. Mani, senior director at Deloitte India said.
He said other items in the same chapter were either taxed at 7.5% or 10%.
Abhishek Jain, partner, EY, said that the move should boost domestic manufacturing of such panels vis-a-vis direct imports.
