The Hindu Business Line : MAIT happy with stable duty regimen

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New Delhi Feb. 28 Hardware Association, MAIT, on Wednesday supported the Government's announcement in the Union Budget to maintain the current excise and custom duty levels on IT products, as lack of stability in the hardware policy could impact the investments in the sector. It also welcomed the increased thrust on e-governance and the computerisation of the Public Distribution System and the Food Corporation of India, as this was likely to increase computer penetration in the country.

"We also welcome the increase in budgetary allocation for e-governance at the Centre by 82 per cent to Rs 719 crore, and to State Governments by 66 per cent to Rs 500 crore, in addition to the decision to computerise the PDS and the FCI. These steps will provide further impetus to the industry", said Mr Vinnie Mehta, Executive Director, MAIT.

The Budget has exempted USB flash memory, DVD drive and DVD writer from excise duty. It has also proposed to extend the retail sales price (RSP)-based assessment on personal computers, printers, monitors, computer key boards, modems and set top

Boxes amongst other products. The RSP extension date is to be notified later.

Computers, printers and set top boxes may become costlier with the Budget proposing to impose excise duty on retail sale price as against the factory-gate price at present. In a reaction to the Budget, Mr Deepak Puri, Chairman and Managing Director, Moser Baer India, said, "Mr Dayanidhi Maran had single-handedly addressed the concerns of large investments in the IT hardware segment with the recently announced IT policy."

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