CMDA-Pune to go on strike if Octroi hiked

PUNE, INDIA: The IT dealers association in Pune—Computer and Media Dealers Association (CMDA) is protesting the proposed hike in Octroi on IT goods. A press conference was held at the PYC Gymkhana, Pune and was chaired by CMDA office bearers, Naresh Lalwani, President; Sashikant Sathbhai, VP and Hemant Naik, Secretary.

In protest of the proposed hike in Octroi, the association even threatened to call an indefinite strike should the hike come into effect. Lalwani said, “Margin on computers is not more than two to three percent, which means if the Octroi is increased from its current rate, PMC Octroi will be more than margin of the traders. Not only that, the impact will be two folds. One is that there will be an inflow of material from other cities, which will hamper computer business in Pune. On the other hand, since computers are mainly used by students, education institutes, household etc, it has become a commodity and an essential item. Increasing the Octroi will directly affect the consumers who will have to pay more.”

According to Lalwani, CMDA has struggled a lot and made major companies like HP, Lenovo, LG, Samsung, Sony and Canon to deliver Octroi paid material in Maharashtra, which has definitely increased the Octroi revenue of PMC.

Naik further explained, “There is a proposal to hike the Octroi on IT goods to the maximum limit, which means that from the current three percent, it can go anywhere up to seven percent. We don’t want any hike at all. At the moment, the vendors are giving us the price on goods which come as Octroi paid material—meaning the Octroi rate applicable for the location is already included in the price that they charge us. If Octroi in Pune increases, then surrounding areas like the Pimpri Chinchwad which come under PCMC Octroi limit will benefit from Octroi which is there currently at 2.5 percent. Already we pay 0.5 percent more than them, but if the Octroi is hiked further, then the customer would prefer to buy from them rather than us.”

The Octroi hike will also impact software companies in the city. Naik said, “Software companies too need a lot of hardware, and with the hike on IT hardware increasing further, they will not find it feasible to continue their business in the long run. This will be a barrier to their business and they might move out of the city impacting employment of people in Pune.”

“It is really shameful that instead of abolishing Octroi on IT goods, it is increased in an IT city like Pune. It clearly shows what kind of vision PMC has about making Pune the number one IT city. Octroi is abolished in all the other states, except Maharashtra. We request the media to take a public poll on this and see the reaction of people in Pune. It is our humble request to take back the decision to hike, otherwise we will have to call an indefinite strike which will result in the total closure of IT services in Pune,” signed off Lalwani.