Amazon seeks cut in import duty on tablets

Amazon plans to bring in its cheapest e-book reader maybe by the next year

US online retail giant Amazon, which plans to bring in its most affordable Kindle e-book reader to India, has approached the government for a cut in import duties, according to sources in the ministry of communications and information technology (IT).

Sources said Amazon India might soon launch its Kindle e-book reader priced below $50, which is roughly Rs 3,200 to India. Sources added the firm had requested the government to look into ways to reduce import duties on this e-book reader and similar products as it claims such devices are more of an educational tool for students.

According to industry sources, such devices attract an import duty of 12-18 per cent. In a meeting with communications and IT minister Ravi Shankar Prasad on Thursday, the top brass of Amazon raised the issue of import duties and requested those be brought down.

A three-member delegation from Amazon comprising Amit Aggarwal, vice-president and managing director of Amazon India; Monique Meche, vice-president - public policy; and Lisam Mishra, director - public policy met Prasad for a meeting.

“Officials from Amazon met the minister and told him about bringing in a new e-book reader, which is more of an educational tool for students. They requested the minister to reduce import duty on it as it is an educational tool,” said a senior official on condition of anonymity.

The official added the minister has told Amazon officials he would look into the matter and also consult with other departments and ministries.

According to sources, Amazon plans to bring in its cheapest e-book reader yet maybe by the next year. It would be pitched as an educational device for students and targeted for customers in Tier-II and Tier-III towns.  Amazon is also learnt to have discussed with the minister about a few clearances problems, which the company is facing from the Bureau of Indian Standards.

Amazon officials apprised the minister on what all they were doing in the country. “They talked about their hyper-local plans in which they are involving a lot of small-time grocers, which is helping them gain massive footprint in India. They also told the minister that 60 per cent of their customer base is now from rural India,” added the official quoted above.