MAIT wants tax reforms policy

href="https://www.dqweek.com/mait-lauds-draft-on-electronics-manufacturing">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.