India cuts tax on set-top boxes

India’s budget is proposing trimming the tax duties on the import and local manufacture of set-top boxes (and routers and broadband modems) in a restructuring of its General Sales Tax (VAT/TVA rules).

In essence the tax rate is to be trimmed from 12.5 per cent to 4 per cent, and some components and “subparts” will receive a ‘Nil’ rate of duty.

According to local sources it is only Videocon d2h which currently builds its own boxes within India. All other major DTH broadcasters and cable MSOs import their boxes.

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