Local manufacturers of televisions have called for “heavy import duties” to be imposed on cheap imported decoders and TV sets in order to grow the local electronics industry and accelerate the implementation of the broadcast digital migration project.
“It is imperative that we create balance. The cheap imports of these devices are collapsing the industry,” said Mike Goodyer from Microtronix, a local manufacturer of TV sets and decoders.
He was addressing the Department of Communications on Friday during a briefing session with local television manufacturers to update the industry on the new delivery model for broadcasting digital migration. The new digital model has been approved by Cabinet.
“As a player in this industry I am fully supportive of the new delivery model for the project; the model is friendly to new entrants in the market. However, I am worried that if heavy import duties are not imposed on cheap TV and decoder imports, the new entrants will suffocate,” said Goodyer.
Dr Mashilo Boloka, acting director general at the Department of Communications, confirmed that his department was in discussions with National Treasury around issues of ad valorem tax against decoders that were manufactured locally.
“The new model merely means that government will not procure devices any longer. It will leave this function to retailers. Retailers will now place orders with manufactures as is their main role in the economy. Government will then rightfully fulfil its role of providing policy certainty and oversight.”
He said the new digital model would be implemented in March next year.
