[India] Despite excise waiver, local set-top boxes to cost more

["Irfan Khan" <khania2@super.net.pk>]

[from The Hindu Business Line]


 Despite excise waiver, local set-top boxes to cost more

Neha Kaushik
K.R. Srivats

NEW DELHI, June 25


CONSUMERS may still have to fork out more money for locally 
manufactured set-top boxes (STBs) than those sourced from abroad, the 
recent excise-duty waiver on such boxes notwithstanding.  

This view is dominant among the local manufacturers, who feel that 
domestic manufacturing of STBs would be more viable in the long term 
only if the Government were not to extend the 5 per cent basic 
customs duty on such boxes beyond July 31, 2003. Ever since the 
Centre announced reduction in customs duty on STBs to 5 per cent, the 
domestic industry has been crying foul over the import duty reduction 
on such boxes.  

"The excise duty waiver would make set-top boxes cheaper. Earlier 
there was little incentive to produce domestically. The exemption 
from excise duty would help compensate and bridge the gap between 
prices of imported and local ones. However, domestic ones would still 
be slightly more expensive than landed ones," Mr Ankan Biswas, 
General Manager (Digital Network & Multi-Media Displays), Philips 
India Ltd, told Business Line.  

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