Split AC, CCTV camera to get expensive as government hikes customs duty

New Delhi: The government on Friday proposed increasing customs duty on CCTV camera, IP camera, digital video recorder and network video recorder to 20% from 15%, in order to provide the domestic industry a level playing field.

Besides, the government has proposed hiking basic customs duty (BCD) on optical fibres, optical fibre bundles and cables to 15% from 10%.

The proposals were announced in the Union Budget 2019-20 presented by Finance Minister Nirmala Sitharaman.

She said the government has also withdrawn customs duty exemptions on specific electronic goods such as switches, sockets, plugs, connectors, relays etc and would now attract applicable rates.

The government has also proposed increasing customs duty on the indoor and outdoor unit of split system air conditioner to 20% from the present 10% to promote domestic manufacturing.

"Make in India is a cherished goal. In order to provide domestic industry a level playing field, basic customs duty is being increased on items such as cashew kernels, PVC, vinyl flooring, tiles, metal fittings, mountings for furniture, auto parts, certain kinds of synthetic rubbers, marble slabs, optical fibre cable, CCTV camera, IP camera, digital and network video recorders etc," the finance minister said.

Charger and power adapter of CCTV camera/ IP camera and DVR / NVR would also now attract a customs duty of 15%. Earlier, these items were exempted from customs duty.

Customs duty on imported loudspeaker has also been raised to 15% from the present 10%.

The government has also withdrawn customs duty exemption on capital goods used for manufacturing of specified electronic items such as cathode ray tubes, CD/CD-R/DVD/DVD-R, deflection components, CRT monitors/CTVs and plasma display panel.

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) has been urging the government to raise customs duties on imported finished goods such as CCTV Camera and CCTV Recorders to promote local manufacturing and discourage imports.