LCDs to become cheaper; govt cuts duty to 5%

Prices of thin flat screen televisions and monitors will come down as the government today lowered the basic customs duty on LCD panels used in manufacturing of such electronic goods to 5 per cent from 10 per cent.     

"The electronic hardware industry has a strong potential for creating employment especially in the SME sector. I intend to reduce the basic customs duty on LCD panels from 10 per cent to 5 per cent to support indigenous production of LCD televisions," Finance Minister Pranab Mukherjee said while presenting the Budget 2009-10.     

Besides, the government extended the exemption from full 4 per cent CVD on accessories, parts and components, that are imported for making mobile phones, by one year.     

"Full exemption from CVD of 4 per cent was available to accessories, parts and components imported for the manufacture of mobile phones till June 30, 2009. I propose to reintroduce this exemption for another year," Mukherjee said.     

He also announced reducing basic customs duty on permanent magnets — a critical component for Wind Operated Electricity Generators — to 5 per cent from 7.5 per cent.     

"It is imperative that the contribution of new and renewable energy sources of power is enhanced if we have to successfully combat the phenomena of global warming and climate change," Mukherjee said.