New Delhi, Sep 18 (IANS): Finance Ministry has abolished the import duty on open cell LED TV panels from 5 per cent to zero, meeting a long standing demand of the industry.

According to market estimates, the prices of TV will come down by 3-4 per cent.

Panels are the most critical component used in LED TV manufacturing, accounting for 65-70 per cent of the total production cost. In fact, at price of Rs 90,000 LED high-end TV, the panel costs Rs 65,000.

The IT Ministry and the the Department for Promotion of Industry and Internal Trade (DPIIT) have also sought reduction of goods and services tax (GST) on large-screen LED televisions to 18 per cent from 28 per cent to revive demand in the festive season.

At present, televisions up to 32 inches attract 18 per cent GST but those with larger screens attract 28 per cent duty. The industry is seeking a tax cut in the GST Council meeting scheduled to take place in Goa this Friday.

IT Minister Ravi Shankar Prasad on Monday held a round table with electronics industry CEOs where higher duties were the main challenge from industry side. Revenue Secretary Ajay Bhushan Pandey was also present at that meeting.

In notification, the ministry said Open cell (15.6 inch and above) for use in the manufacture of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels is made zero duty with immediate effect.

The goods for use in the manufacture of Open cell of LCD and LED TV panels - Chip on Film, Printed Circuit Board Assembly (PCBA), Cell (glass board/substrate) will not attract any duty, it said.

The industry can now revive LED TV manufacturing in the country, many of them including the largest TV maker Samsung had exited local TV production last year due to imposition of 5 per cent duty on open cell TV panels.