MAIT Seeks Reduction Of Taxes For IT Hardware

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New Delhi: In a bid to boost sales of personal computers, IT hardware industry body MAIT recommended that government should reduce the indirect taxes on IT hardware.

A report released by MAIT along with KPMG recommended to reduce excise duty rate on hardware from 12 to 6 per cent to align the duty structure with mobile phones.

The report sought implementation of schemes to promote purchase of PCs amongst specific segments like students and less than Rs 5 lakh income households.

The present affordability level is Rs 5 lakh annual family income to own a PC.

"The Indian IT hardware industry can look forward to making a substantial impact by taking some of the steps such as bringing down the hardware cost by 43 per cent with the help of the Government subsidies," it added.

The report titled, 'Indian Market Place- IT the unrealised potential' said the current PC penetration in rural India is limited to 9 million households whereas 14 million can afford computers, as they fall above the estimated affordability level of Rs 5 lakh annual family income.

"Hence, 36 per cent households in rural areas that can afford a PC still do not own one. Low rural literacy, poor infrastructure and lack of local language product customisation are some of the key impediments to rural PC penetration," it said.

Manufacturers' Association for Information technology (MAIT) Executive Director Anwar Shirpurwala said increasing the penetration of PCs would not only contribute to the economic drivers but it would carve a path towards a developed and computer- educated society.

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Source: PTI
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