Aside from the fact that a host of products like television sets, imported mobile phones and LED lamps are going to become expensive[1] with a hike in their basic customs duty, industry stakeholders are hopeful that the government's move will wash out the unorganised players in the consumer durables goods segment.
"Rise in import duty will surely impact players who were sourcing and importing large percentage of their LED[2] lamp requirements. This will also impact the unorganised or unbranded segment which was importing cheap LED lamps and products from China," Puneet Dhawan, Senior Vice President and Business Head, Lighting, Orient Electric, told IANS.
Dhawan claimed that his company has indigenous manufacturing of more than 95 percent products and will have practically no impact due to the duty hike.
Import Tax on Phones, Cameras, and Televisions Increased; Move to Hurt Apple and Others[3]
On November 15, the Finance Ministry increased the basic customs duty on a host of products, including electronic items like mobile phones and televisions, to curb surging imports -- making them more expensive -- and also to give a boost to the 'Make in India' programme.
According to a government notification, the customs duty on mobile phones has been hiked to 15 percent, TV sets and microwaves to 20 percent, video cameras to 15 percent and LED lamps to 20 percent.
Withdrawing the exemption of basic customs duty on LCD, LED and OLED[4] panels, which are used in TV manufacture, the government has imposed a 7.5 percent duty.
"Many temporary players that are there in the market will suffer a setback. It will be a kind of wash-out for them because it will be very difficult for them to...