"PC, stay just the way u r"

New Delhi: Computer hardware industry lobby has called upon the government to continue with the present duties and policy structure without much tinkering in the forthcoming Union Budget.

In a petition to the union finance ministry before the Budget, Manufacturers Association of Information Technology (MAIT) has demanded status quo and stressed upon the need for a stable policy regime in IT hardware.

“MAIT members have unanimously emphasized that status-quo be maintained on tax structures for IT products including the continuance of a reduced excise duty of 12 percent on PCs,” said MAIT executive director Vinnie Mehta. “Since 2004, the PC industry has witnessed changes in the excise duty structure; however, it is only in the last one year that an excise regime was introduced to establish a level playing field between local manufacturing and imports. It is imperative that this continues,” he added.

“In the same spirit, all IT products should attract the same rate of VAT across the country. Further, the levy of central sales tax (CST), which with its cascading impact, is a major deterrent to local manufacturing, must be removed immediately,” demanded Mehta.

The hardware industry has demanded that a status quo be maintained on the excise duty rates for all IT products. PCs should continue to attract 12 percent excise duty while other IT products should remain at 16 percent.

IT products attract nil customs duty as per India’s commitment to the WTO. The same should continue. MAIT has demanded the FM to ensure a seamless CENVAT IT manufacturing value chain. Inputs and components at no stage should be at lower excise duty compared to the output or finished products.

The only other significant demand from the hardware lobby is that the FM ensure VAT at a uniform 4 percent rate on all IT products across all states and abolish the CST with immediate effect.