14% tax for LCD DVI monitors! Posted on 24/01/2006 at 16:41 by Vincent
We were afraid of this decision and spoke about it several times. Europe has decided the creation of a new tax of 14% on imported LCD monitors starting from the January 18, 2006. One manufacturer even told us that the new 14% tax would lead to a 20% end price increase.
This new rule doesn't apply to all monitors though. The only one targeted are those assembled outside of the European Union. What will happen?
until December 31, 2006 at least, 4/3 19", 17" and below monitors are exonerated.
19" wide monitors and above and 20" monitors and above equipped with a DVI input and assembled (assembled= panel and DVI input not only the packaging) outside of the European Union will be subject to a retroactive tax of 14% (retroactive for manufacturers).
We called the manufacturer to get their reactions and most of all the consequences of such a tax on monitors:
Acer : No comment for now. We will have more information in the days to come.
Belinea: has increased the 20" and above monitors prices from January 19, 2006. The repercussion will come soon in monitors in shop. Belinea has however anticipated this new tax by importing most of their stocks before the 18th of January to delay the impact of this tax. This mainly concern the 10 20 35W which will be spared by this price increase at least for the weeks to come.
BenQ: will open a factory in the eastern countries during the second quarter of 2006. Until this date, BenQ absorbs the tax. Monitors prices are unchanged for now. They will also produce OEM monitors for other brand which will beneficiate from the 14% tax exoneration.
Philips: all wide monitors are build in Hungry (20 and 23"). There only one 20" 4/3 which price will increase soon.
LG: all monitors for European countries are assembled in Wales. They won't be impacted. .
Nec: confirms that the tax will affect prices, but hasn't specified when or how much.
Samsung: no change of prices. Samsung prices already take this tax into consideration. Also, most of the monitors are built in Europe in Eastern countries and won’t be concerned by this tax. Fort those assembled in Korea, Samsung will absorb the tax without any repercussions on end users.
Viewsonic: prices won't be modified in January. We will however have to wait for a new price list in February.
We were afraid of this decision and spoke about it several times. Europe has decided the creation of a new tax of 14% on imported LCD monitors starting from the January 18, 2006. One manufacturer even told us that the new 14% tax would lead to a 20% end price increase.