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Keralites, who make up a of the Indian community in the Gulf, will be hit the most by the new 36.05 per cent customs duty on flat panel TVs which took effect on Monday.
The duty, which is expected to supply around Rs 750 crore to the Centre’s kitty and also boost domestic flat TV manufacturers, is likely to slash the import of flat TVs from the Gulf as part of air passengers’ free baggage allowance.
The cut in free baggage weight from 30 kg to 20 kg by Air India has already hit these imports.
Of late, the flat panel TV has emerged as one of the top items in the free baggage of many Gulf Malayalees visiting home on vacation. Hundreds land at Kerala’s three international airports every day carrying a large panel TV.
The difference in their prices compared with those in the domestic market is substantial. From Monday, the price advantage almost vanishes.
The LCD, LED, plasma and 3D TV gained popularity in the past few years replacing the conventional cathode ray tube television set, as people’s spending power increased.
Among the flat panels, it is the LED that has a fast-growing market . The price gap between the LED and LCD is fast narrowing. But the difference in prices between LED TVs is noticeable. When the LCD became popular years ago, its price was much lower in Dubai than in India. Sony, particularly its popular Bravia series, has been the Gulf Malayalees’ TV of choice. In most cases, it is the bigger panels, measuring above 32 inches, that find takers in Kerala.
For many in Kerala a flat TV is a sought-after ‘Gulf gift’ and for well-off Gulf returnees it is a matter of pride to be able to gift it. But, for labourers who make about around Rs 10,000 to Rs 20,000 a month, bringing in TVs for resale at a premium is a source of additional income that takes care of a part of the travel cost. A 40-inch flat TV can help them earn Rs 5,000 to 10,000 when resold. But from Monday, all this is going to change. Few Gulf returnees will want to gift it by paying the hefty 36 per cent duty.
The imposition of customs duty has come at a critical time — the Onam season. This season sees the largest number of Gulf arrivals, and a flat TV used to be a wonderful Onam gift.
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