Custom duty on Set Top Boxes increased from 5 to 10 percent

28 Feb,2013

By A Correspondent

 

P Chidambaram 

In a move that could have some impact on the digitization process, Finance Minister P Chidambaram has mooted an increase in custom duty on set top boxes from 5 to 10 percent.

 

Phase 1 of digitization kicked off in three metros on November 1 and is scheduled to happen from April 1, 2013 in 38 cities, even though there is information that the execution may be delayed.

 

Smita Jha, Leader, E&M Practice India, PwC said, “In principle, this move is to encourage local manufacturing of STBs. In that sense, it is a step in the right direction for the prospect of local manufacturers. But having said that and keeping the DAS deadlines in mind, I am not sure if it will really benefit the industry. With customs duty being raised, the cost will be passed onto either the consumer or be borne by the STB importers. Given that the prices of STBs are also very competitive, it is not a very good news for MSOs and LCOs since they might have to bear the costs.”

 

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