New Delhi, Aug 20 (KNN) In an effort to boost the domestic electronic market, the government has decided to impose a ban on duty-free import of flat screen televisions.

According to the new norms, starting August-26, air passengers will have to pay 35 per cent of the cost of the product as duty and other charges.

The Revenue Department issued a notification that amended rules so as to "disallow import of flat panel (LCD/LED/Plasma) television as part of free baggage allowance" with effect from August-26. 

The decision has come as a relief for domestic consumer electronics and appliances makers as the demand for domestically produced sets will increase.

Hailing the government’s decision, Consumer Electronics and Appliances Manufacturers Association (CEAMA) said, “It is a positive effect on the whole industry. We welcome the decision whole heartedly.”

Speaking to KNN, Secretary General of CEAMA, Suresh Khanna said, “Around 1 million television sets were coming as hand baggage from Singapore and Thailand as there they have no taxes.”

Earlier, the screens of up to Rs 35,000 were allowed as a baggage allowance for the travellers. Mostly, the television sets were imported as air baggage from countries like Dubai, Thailand, Singapore where the price difference was high compared to India.

The government had lost Rs 750 crore the previous year due to duty-free imports and the capacity utilisation of the Indian makers was 70 per cent, Khanna added.

Domestic producers, he said, have invested more than Rs 1,500 crore in setting up manufacturing facilities for flat panel TVs.   (KNN/SD)