Hike in excise on consumer durables spells gloom for industry and consumers
Budget 2010 may have brought some cheer to the media & entertainment industry but the home entertainment segment is hurting.
Television sets are expected to cost more in the new fiscal, thanks to an increase in excise duty by almost 8 to 10 per cent on consumer durables such as TV sets, air-conditioners and refrigerators. The finance minister also announced that prices of some electronic items may go up.
Friday’s budget proposals have sent industry experts into a huddle and they’re busy scrutinising the fine print to examine the likely impact.
The news is in sharp contrast to the Customs duty relief LCD panels received in last year’s budget. The finance minister had said that Customs duty on LCD panels would be slashed to encourage indigenous production. Consumers too were ecstatic.
Now research firms expect sales figures for TV sets to be pegged between 1 million and 6.5 million in 2010. Globally, Samsung plans to sell over 2 million 3D LED-backlit LCD TVs this year, of the total 35 million LCD TV sales it has targeted for 2010.
Moreover, technological advancements are likely to further hot up the TV space this year. Box Office India had reported earlier, that apart from Samsung, many TV manufacturers like LG, Panasonic and Sony had announced a foray into the 3D TV space. The hike in excise duty on TV sets may thus impact these TV sets, burning a hole in the consumer’s pocket.