MAIT wants tax reforms policy

Manufacturers' Association of Information Technology (MAIT), the national association of hardware industry believes that the new draft on IT Policy 2011 is a right step in creating India as stronger IT destination, but tax reforms are very much needed to facilitate IT penetration. The association worked closely with the Ministry of Communications and IT and the Department of Information Technology (DIT) in bringing out the policy draft. MAIT however believes that ITeS is the most visible part of the policy.

Speaking to CIOL, Alok Bharadwaj, president, MAIT said that draft proposal is progressive and refl ects the intent of the government to take country to a higher level. "More emphasis on the hardware industry in the policy framework should be given, so that it would transform India into a globally-recognized IT hub," he said. As a responsible industry body, we believe that there should be more precise emphasis on taxation and related framework, Bharadwaj said. MAIT said that that there are some issues related to taxation in different states, which are eventually hampering the IT penetration in the country. With an intent to facilitate IT, there is no custom duty on IT products as per ITA mandate, the association said. "In order to allow free flow of IT goods within India, there should be a single amalgamated market for IT," he said. MAIT, however, said that government should work to remove barriers such as VAT and octroi that could prosper movement of IT goods within the country. "This wouldn't be possible without center intervention as well as with the help of all stakeholders that include industry and state governments," Bharadwaj added.

The association believes that the government should address this issue to facilitate IT in the country that could lead to deeper penetration of PCs. "It will eventually facilitate government's ambitious electronic public delivery system as well as various e-governance programs," he suggested. MAIT believes that tax reforms would bring cheer to the consumers and could accelerate government-driven projects that will help in eliminating corruption.