The consumer Electronics & TV manufacturer’s Association (Cetma) has severely criticized the government’s plan to impose a levy of 10-15% ad Valorem on sales of TV sets in the country. Cetma has described this move as “anti-aam aadmi”.

The industry association feels that such a levy would increase the tax burden on the color TV industry from the current 35% to 45-50%. The current tax structure for a color TV includes a 6-8% customs duty on components, 10% excise duty, 4% central sales tax & a 12.5% Vata.

The industry experienced a growth of 7-8% last year and about 10% growth is expected this year, which is respectively higher. However, this growth would be impeded by the government’s proposed move.

According to the general secretary of CETMA, Suresh Khanna, “This proposed levy could also increase the presence of gray market which currently constitutes about 20% of the total CTV Market.”

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