Topic: Why are LCD TVs so expensive in the Philippines?

[dave]

Does anybody know why LCD TV prices are so high in the Philippines?

It seems that the prices are 50% to 100% more expensive here vs. the US (and sometimes even more than 100%).  I understand the 12% VAT, but where is the rest of the markup coming from?  Is there a 100% luxury import tax or something?

[tailhook]

likewise wondering about this myself. same issue with broadband access and cars. WHY so much more expensive in a freaking third world country?? 

[Jomari_deleon]

And the fact we are closer to the manufacturing country and manufacturing plants!  I think electronic taxes here are high+Evat+too much trust on the reputation of Sony and lack of competition... Or maybe suppliers here just wanna sell with a high profit margin! 

[TimSavvy]

I think the high price is not the fault of resellers or distributors because even grey market sells at a premium.

LCD/Plasma sales competition in Manila is *very* though..  I'm sure their margins isn't that huge compared to cars/condomeniums/etc.

[artsky]

maybe importers need to bribe lots of people even if they are importing legally. eventually we pay for all of that.

[dave]

Does anybody know if there's an official import duty levied on flat panel displays that could explain the huge markup?  50% or 100% would be a pretty large bribe.

[scifi-fan]

Yes... Any LCD panel with a TV tuner or the ability to accept NTSC/PAL via Coaxial is a LUXURY good. Hence it's slapped a duty of 50% from the gross purchase price on top of 13% VAT.

Hence you buy a $1000 LCD TV and it costs you $250 to ship it here, it's gross price is $1250 + 50% duties + 13% VAT.

You'll end up paying nearly $2100 + miscellaneous expenses like documentation stamps, transaction fee etc etc etc.

The 50% duty covers the taxes paid for every TV sold in the country (airwaves are sovereign property of the Philippines) and some other stuff like entertainment taxes and NTC permit.

I know medyo nosebleed pero convoluted ang taxation sa Pinas since these are relics from the 50's.

Would you believe in the UK, it's citizens are paying the gov't so the gov't can pay the BBC. That means each citizen who owns a TV also pays the gov't so it can create TV shows for them to watch. I know some UK citizens who deliberately don't own TV sets and opt for LCD Panels to opt out of the tax and use media players instead.

You take out the TV tuner component and it becomes just a LCD panel display (like the ones used for PCs) and it's not subject to 50% duty. That's why cheap ang LCD monitors.

[dave]

Thanks scifi-fan.  That would explain a lot.

Too bad they're not selling 40+ inch LCD monitors without the tuners for 50% discounts.