BY MOHAMMAD SHOEB
DOHA: India’s decision to impose import duty on flat television panels (LCD/LED) has led to a sharp decline in the number of Indians carrying TV sets home.
“We have noticed a steep fall in the number of Indians travelling home with flat screen TVs, due to the recent customs levy on TV imports, said Anil Srinivasan, Country Manager-Qatar, Jet Airways. “The number has declined to nearly one fourth (by 75 percent) after India placed a ban on their duty-free imports.”
India, with yawning current account deficit and weakest ever currency, has been discouraging people from importing goods, especially gold and TV sets, to control capital outflows.
LuLu Regional Manager-Qatar, Shaijan M O, claiming to have about 25 percent market share of TV sales in the country, said: “Sales have gone down by 20 to 25 percent. Some, who bought the products earlier, even came to return them after learning about the recently announced 35 percent custom duties.”
According official estimates, more than one million television sets were imported to India last year, with UAE, Thailand, Singapore, Qatar and other Gulf states as the primary source destinations. It has been affecting the businesses of local suppliers. Estimates suggest that the TV market in India was as big as 3.7 million units in 2012, and is forecast to grow to over five million this year.
Imposing higher duties on gold has also raised scepticism among some non-resident Indians with regards to carrying gold jewellery.
Higher gold prices in India and declining value of rupee prompted many Indians to purchase gold jewellery to take home.
According to reports, male passengers are allowed to bring in duty free gold worth Rs50,000 (about QR2,778) into India, while for women, the limit is Rs100,000 (about QR5,556). If anyone carrying gold above these limits, they will be subject to duties.
Asked about Indian families owning gold jewellery worth more than Rs100,000, but want to take it home, Deputy Head of Mission at Indian Embassy, P S Sasi Kumar, said: “We have not received any information in writing about the latest regulations. However, according to available information, such families are advised to consult custom officials to get endorsed the details of the jewellery in their passports and bring it back while returning.”
According to local traders, the raised import duties in India did not have much impact on the demand for the yellow metal, as this is a marriage season back home.
“Those who have to buy they are still buying… Historically, import restrictions on gold did not have much impact in the actual volume of imports; it may only bring back the dormant smugglers into action,” said Azim Abbas, Managing Director of Al Sulaiman Jewellery & Watches.
The Peninsula
