KARACHI, April 27: Sale of substandard colour TV sets is gaining popularity among the masses due to low price tags, thus proving boon for the price conscious buyers and bane for the local TV making industry which estimates that approximately 50,000-60,000 such TV sets are being sold per month in the market.
Some importers have adopted a unique way of making use of the obsolete monitors. They import the assembled kit of television sets separately and are using the second hand monitor picture tube converting it to television set.
Many dealers at their shops have displayed the banners which quote the price of 3,600 for a 14 inch TV set and Rs 4,200 for a 17 inch set, offering more than 200 channels and other additional features. This price holds charm for those consumers who still cannot afford branded TV sets, although their prices is falling due to intense competition and price war among the producers.
The persistent rise in the entry of new foreign and local entertainment and news channels have caught the attention of consumers who have virtually gone wild in bringing home TV sets at various price tags. This rising demand has given a tremendous boost to the sales of locally assembled television sets as well as substandard TV sets but the local TV makers feel irked by the rising sale of substandard TV sets that has been fast capturing a sizable volume, thus threatening the financial viability of the local industry.
A few years back the developed countries had launched completely a new series of computers comprising the latest and advanced technology. As a result, the old technology became obsolete.
To handle the situation, developed countries took a chance by offering obsolete products to under developing countries at throw away prices. India and other Asian countries refused to accept such so called lucrative offer. Unfortunately, the policy makers in Pakistan decided to accept this offer and accordingly allowed import of such used and obsolete product.
Economic managers of Pakistan were of the opinion that the cheaper imports of computers and monitors would benefit the students and poor masses. Initially, it did so. But, with the passage of time it was realised that it could be of no real benefit either for the students or for the poor as it was not matching the requirement of such users for various reasons such as time consuming processing, lack of several functions and thus it could be used for few applications only. They were, as a matter of fact, unable to utilize these properly, efficiently and effectively for official work and chat and communicate with their friends who were using the computers and monitors of latest technology.
The chairman, Pakistan Electronics Manufacturers Association (PEMA), Sarfarazuddin says that users of IT technology have now declined to use this old and obsolete material but some unscrupulous elements have entered the market to utilize the situation by managing the import of assembled kit of TV sets separately and using the second hand monitor picture tube with it converting the same as a TV set. He says such importers are on one hand cheating the consumers and on the other evading sales tax and duty because of its unbelievably under-invoiced value.
The local industry now requires protection especially from the import of used computers and monitors, which are being sold in the markets at cheaper rates without any warranty and service support.
The association, he said, had pointed out the above scenario to the Central Board of Revenue (CBR) and demanded a complete ban on the import of used and second hand monitors. PEMA also does not favour the government’s move to bring down the highest slab of duty to 20 from 25 per cent. He said that cut in duty would adversely affect the local industry. PEMA, he said, strongly recommends maintaining the existing slab of duties and continuation of SRO 456(I)/2004 to save the substantial investment made especially in the last couple of years.
Currently there are 14-15 TV makers in the country who had rolled out 850,000 TV sets in 2003-2004. TV sets have never been so cheap in the history of Pakistan. Buyers are literally confused these days in selecting the models, features and designs that are being changed so frequently in order to lure buyers.
In its proposals for 2005-2006 budget, Sarfarazuddin also demanded an increase in the current rate of duty to 10 from five per cent on the import of CBU monitors.
