Consumers will have to shell out more to buy television sets, microwave, LED lamps and some other electronic items after the government last week hiked import duty on such items to drive up local manufacturing. According to the government notification, Customs duty on television set has been raised to 20 percent while on imported smartphones, the duty has been hiked to 15 percent. LED lamps will now be charged with a 20 percent import duty. The tax on import of microwave ovens too has been doubled to 20 percent.

"Further to the government's notification, completely imported CBU (completely built units) will see a rise in the pricing of their product. For instance, a completely imported TV will incur BCD (basic Customs duty) of 20 percent when compared to a domestically manufactured television," CEAMA President Manish Sharma told PTI.

Sources who did not wish to be identified said LED TV sets will see an average increase ranging from Rs 2,000 to Rs 10,000, depending on the screen size. Sharma, who is also the President and CEO of Panasonic India and South Asia, said local manufacturers will stand to benefit as it will not only encourage indigenous manufacturing but create a latent demand for Make in India products. The move is expected to encourage foreign players to manufacture products in India as the prices are expected to go up, especially for television sets. Besides, those Indian manufacturers that have a manufacturing base across the country will benefit.

"Local manufacturers like Videocon will have no impact, but definitely there will be minimum 5-6 percent hike for all other companies importing CBU. With this hike, international companies will have to look up for a solution locally rather than importing the products," CMS Electronic Junction Managing Director C M Singh said. CMS Electronic Junction is a chain of electronic stores across the country.

On the increase in duty on import of microwave ovens to 20 percent, Godrej Appliances Business Head and EVP Kamal Nandi said: "Overall, there will be a price increase of Rs 400 to Rs 500 in the microwave oven category, which will impact demand in the short term."

Apple has increased prices of various iPhone models by up to Rs 3,720 after the duty hike, as per the updated prices on Apple India's website.

Customs duty on video recording equipment as well as TV cameras has been raised to 15 percent from 10 percent. Import duty on set top boxes has been doubled to 20 percent. – Money Control