When Finance Minister P Chidambaram announced hike in import duty on set top boxes (STBs) from 5 per cent to 10 per cent, there was a collective wave of concern amongst the cable and DTH operators. The only ones rejoicing are the local manufacturers of STBs, who see more orders coming their way.
The cable industry has slammed this announcement and said that the timing is incorrect and will impact the digitisation process underway in the country; a few even called this hike “illogical”.
The Government, on the other hand, has maintained that the reason for the hike in import duty is to give a boost to the local manufacturers and added that in the long run it will benefit the industry.
Meanwhile, the Government has also released data regarding digitisation in Phase II, which states that 55 per cent of the digitisation has been completed by the end of February 2013.
Uday Verma, Secretary, Ministry of Information and Broadcasting insists, “The hike in import duty on STBs will not overburden the industry. The returns will be good in the near future. The idea is to benefit local production for the coming Phase III.”
Watch out the video to know more-