Boosting Local TV Manufacturing Amidst Duty Adjustments

The government's proposal to adjust customs duties on TV components aims to enhance local manufacturing. Middle-class consumer spending is expected to rise with income tax reliefs. However, this move may favor larger firms, creating an uneven playing field, while challenges in local capacity remain.

Television makers have lauded the government's proposal to double customs duty on touchscreen display TVs, as well as reducing levies on inputs for manufacturing open cells. These measures are expected to bolster local production in the sector.

The anticipated easing of income taxes could ignite consumer spending by the middle class, providing a further boost to the market. Yet, smaller companies voiced concerns that reduced duty on components for manufacturing Open Cells primarily benefits major players, fostering potential market imbalance.

Industry leaders like Panasonic's Manish Sharma view the inverted duty structure alignment as a catalyst for production growth. Videotex and other manufacturers hope these budgetary reforms will spark expansion in electronics manufacturing, despite existing hurdles in local sourcing and production capacity.

(With inputs from agencies.)