MAIT welcomes third stimulus package

Most Commented

Unified Communication for your Biz

Improve your contact center performance. See how you can make a difference.

Watch Now

Reach the ICT Community

Engage and build your ICT audience with CIOL online advertising.

Know more

MAIT welcomes third stimulus package

Expressing satisfaction on the recent announcements by the government

Wednesday, February 25, 2009

Email This

Print This

Comments

RSS

NEW DELHI, INDIA: MAIT, the apex body representing India's IT hardware, training and R&D services sectors, welcomed the announcement of the third package for economic stimulus by the Union Government to give a boost to domestic consumption and provide relief to the industry through four percent reduction of excise duty and two-and-a-half percent reduction in service tax.

Expressing satisfaction on the recent announcements by the government, Vinnie Mehta, Executive Director, MAIT, said, "We welcome the several proactive measures announced by the government over the last few months to sustain the growth of the domestic economy. Four percent reduction in CENVAT rate (excise duty/CVD) will help bring down the prices of IT products other than computers.

With this, hardware equipment would attract eight percent excise duty while desktops and notebooks will continue to remain at the same rate. Excise duty on desktops and notebooks was brought down to eight percent in December 2008"

Mehta added, "We are also glad that the service tax has been brought down to ten percent. This will provide some relief to local computer manufacturing industry which was under stress due to CENVAT overflow as the service tax on software was significantly higher than the excise duty on computers."

Elaborating on the measures for boosting consumption of IT products in the country, Mr Mehta said, "Apart from fiscal measures as announced today, It should also be made mandatory for nationalised and PSU banks to earmark funds for easy and subsidised loans for purchase of IT products and solutions for the SMEs and the home consumers, especially for education.

Similarly, Governments Central and State should extend interest free loans to all their employees for purchase of IT products. Further, as several e-governance projects are being rolled out, these need to be replicated across all the states in the country and completed at an accelerated pace. Providing for local-language interface will be critical for the success of such projects, especially those aimed at Government-citizen interface."

©CIOL Bureau

Would you like to on this article?

Be first to comment on this article

Name
Email
Your reply

Intuit Money Manager set to make India debut

Is China speaking English to beat Indian IT?

China wooing Indian IT companies

Obama visit arouses mistrust among China netizens

I have never used Twitter: Obama

R&M unveils new cabling module, Cat. 6A

USB 3.0: Simplifying validation and debug

Imation ships world's first wireless USB HD

NaviSite inks deal with InMobi

India, China add big buzz to wireless broadband

	Simplify Business Management. ERP solutions by IBM
	Carry your Dream, Convey your Value with ZTE
	A fault tolerant server to reduce your TCO

	A must attend event for IT Professionals
	How to make your enterprise productive
	Unified Communication can impact business. Know how

	Making Web3.0 a Reality!
	CIOL Enterprise Next :What's NEXT in IT? :
	Decrease Total System Costs With Cyclone IV FPGAs

	Reach your desired Target Audience and realize high ROI
	Effective ways of Customer Acquisition through Demand Generation
	Reach 2,500 potential Enterprise Customers!