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June 22, 2001
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Money > Business Headlines > Report June 22, 2001 |
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Import duty on hardware may continue till 2005Bipin Chandran The import duty on computer hardware may not come down to zero by 2003, as announced by the government earlier. Instead, a proposal has been mooted recently to advance the deadline to 2005. The reason cited for this is that the Indian hardware industry is not mature enough to face open competition from international giants. As per the IT Agreement of the World Trade Organisation, India has to bring down the import duties on all IT-hardware goods to zero by 2005. But, on the basis of the recommendations made by the IT task force set up by the Prime Minister, the government had taken a decision to hasten this process and go in for zero duty regime by 2003. Dwelling on the proposed move to extend the deadline to 2005, a government source said, "We think the domestic hardware industry will need some more time before it can face open competition. Hence, the IT ministry has mooted a proposal to go in for a 2005 deadline instead of 2003." The government was to bring down the customs duty on various IT-hardware products to zero in a phased manner by 2003. At present, goods like finished computers and mother boards still attract import duty of 15 per cent. Earlier, these products attracted an import duty of 20 per cent. While in countries like China, the import duty on IT products ranges between 9 to 15 per cent, in most of the developed economies it is at zero. The critical components for hardware manufacturing like microprocessors, integrated circuits and micro assemblies, hard disk drives, fixed disk drives, CD ROM drive and other storage devices, data graphic display tubes for colour monitors, deflection components for use in colour monitors for computers currently attract zero duty. Earlier, an import duty of 5 per cent used to be levied on them. Powered by YOU MAY ALSO WANT TO READ:
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