Bhaskar Hazarika, New Delhi
Financial Chronicle
Recession-hit IT industry is seeking long-term growth-oriented policy to boost the IT hardware industry. The Manufacturers’ Association for Information Technology (MAIT) has submitted a pre-budget memorandum to the finance ministry urging a stable policy regime for the IT hardware industry to boost domestic consumption.
The industry body urged the government for continuation of 8 percent excise duty/ countervailing duty (CVD) on all IT products including computers, peripherals and components. Vinnie Mehta, executive director, MAIT stressed on providing appropriate incentives for IT manufacturers - finished products and components in India, as in the case of semiconductors, which would have a positive impact on IT manufacturing investments.
“The 4 percent special additional duty (SAD) should be abolished on all IT products and components. The SAD was introduced on imports to balance the impact of local taxes on domestic-manufactured products. With central sales tax being phased out, the SAD should, therefore, be abolished or at least be made at par with it,” the recommendations stated.
The IT hardware industry has witnessed a decline during the last couple of quarters due to the global credit crunch. The desktop sales witnessed a slump decline and growth of the notebooks have slowed down.
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