Stable IT Policy Urgently Needed: MAIT
The apex body representing India’s IT hardware industry, MAIT, in a memorandum to the Ministry of Finance, Government of India, has emphasized on the need for a stable and holistic policy and growth-oriented measures to boost IT hardware industry in the country.
According to Alok Bharadwaj, President MAIT, “With low consumption of IT products in the Financial Year 2011-12 owing to the Thailand flood and Rupee devaluation, we are now hoping for a long-term growth-oriented and investment friendly policies to provide much needed drivers.”
Stressing on the need for rapid expansion of IT hardware industry, Bharadwaj said that IT is a big enabler in India’s economic transformation. MAIT members have repeatedly emphasized that a long-term, comprehensive policy framework is the need of the hour to encourage manufacturing and a much-needed investment fillip to the IT industry in India”.
India’s IT hardware industry was pegged at Rs 70,000 Crore in 2010-11. However India manufactured product was less than 30%. MAIT believes this must change. Hence providing appropriate incentives for IT manufacturers, both bigger concerns and SMEs in India would have a positive impact on IT manufacturing investments.
The MAIT memorandum to the finance ministry includes seven key recommendations for Union Budget 2012-13. These include:
1. Removal of anomaly in Inverted duty structure & abolition of 4% special additional duty (SAD)
2. Withdrawal of MRP based assessment for IT products
3. Custom Duty correction for lenses & accessories
4. Abolition of MAT & continuance of exemption benefits on Manufacturing in nominated areas as well as schemes
5. Correction of double taxation in AMCs (Annual Maintenance Contracts) as both goods and as services.
6. Confirmation on GST implementation timelines
7. Clear guidelines on Transfer pricing to eliminate ambiguity & unpredictability to enhance investor’s sentiments.
MAIT also announced a slew of new initiatives as an expansion of its charter and goals for 2012 that includes launch of E-waste information exchange portal, in 90 days, expansion of membership to include recyclers, SI, SME, Channels Associations, Sectoral skill development centres, R&D centres etc. finally, creation of specialized vertical chapter in MAIT as house with in a house. Launching Green IT chapter and –e-waste recycler chapter.
Bharadwaj added, “In order to expand the reach of MAIT’s agenda, we are on a drive to expand the membership base to include all elements of IT ecosystem including design centres, recyclers, Skill development centres, application developers, system integrators and most importantly, Indian SMEs.
In order to build a sustainable and environment friendly IT industry in India, MAIT also announced the launch of e-waste information exchange portal to help members on better compliance and awareness on this subject.