MAIT Seeks Reduction Of Taxes For IT Hardware
Facebook Twitter google+ RSS Feed

MAIT Seeks Reduction Of Taxes For IT Hardware

cmt right
Comment Right
cmt right
cmt right
Printer Print Email Email

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.

Read Also: Employees In India Are Embracing BYOT, Even If Organizations Aren't: Forrester and Infosys To Cough Up $34 Mn Over Visa Fraud, Biggest Fine Ever In U.S. History

Source: PTI
Experts on SiliconIndia
Santhosh  K
Sr. Soft. Engg.
Oracle India
Nehal Vyas
Sr. Team Lead
Cyberoam Tech.
Rani Malli
Sr. Director
Sr. Executive
Vijay Balkrishna Konduskar
Business Consultant
Imans Web Tech
Dr L P  Sharma
Technical Director
Reena Khanna
Dellas  Asse
sys-network admin
Computer Station
Write your comment now
Submit Reset