The Consumer Electronics and TV Manufacturers Association on Thursday strongly objected to reports suggesting levy of cess on television sets, saying it would cripple sales.
Reacting to media reports that the information and broadcasting ministry proposed to levy cess on TV sets to make public broadcaster Prasar Bharati self-sustainable, CETMA said, "We appeal that the funds for the same be provided by the government, instead of making consumers pay.
"Levying of cess on TV sets will make them costlier and thus un-affordable to the rural masses, who are the main viewers of Prasar Bharati channels."
The association said the TV industry was already subjected to the highest level of taxation/government levies.
"A TV set has an excise duty of 16 per cent, sales tax, even on Black & White TV sets, ranges from 12 to 17 per cent in various states, octroi, entry tax, besides other taxes such as surcharge and turnover tax.
"Most people, particularly those living in rural areas, are not able to afford TV sets due to high prices following high level of taxation. The penetration of TV is less than 20 per cent in rural areas," it said.
CETMA urged the information and broadcasting minister to impress upon state governments for lowering sales tax on TV and radio sets to four per cent.
It said the total level of tax in India was about 35 per cent, much higher than that levied in China and South-East Asian countries.
"While the domestic sale of TVs in India is about one crore (ten million) sets annually, it is more than 3.5 crore (35 million) in China," CETMA said.