Tax your way to piracy!

[Tech&ME]

Yes! the Union Budget 2006 announced by Finance Minister has :

Quote

"138. I propose to impose an 8 per cent excise duty on packaged software sold over the counter. Customized software and software packages downloaded from the internet will be exempt from this levy."

Unquote

So, this makes way to more pirated softwares, people already are not ready to pay for higher priced software products and then this announcement will only increase more use of pirated softwares.

Quote

"147. There are two requests from trade and industry. I had exempted computers from excise duty in order to boost the use of computers. That purpose has been largely served. Domestic manufacturers have sought re-imposition of excise duty at 12 per cent in order to enable them to take CENVAT credit as well as to face competition from imports. I propose to accept the request. Since the 12 per cent excise duty will be eligible for full input tax credit, there should not be any impact on price"

Unquote

This is well a good step as well as bad, because vendors will make wrong use of it and burden the consumers with 12% tax.

Quote

"139. I propose to fully exempt from excise duty DVD Drives, Flash Drives and Combo Drives."

That's a pretty good move.


Source: Finance Minister's Speech.

Please post your comments

[kumarmohit]

So Vista will be more expensive ehh

[mario_pant]

LoL.... i'll buy my new DVD Rewriter on 1st april then.... i'll save around Rs. 350! YaY!

[mario_pant]

actually on second thaught i cant answer that poll much... cause if the PCs are gonna be more expensive then the sale will decline and therefore there would be less new customers.....
now if we take a look on the PC-owners....
packaged soods (software goods) will observe increase in rates, this i think, will have very little effect! But as far as the DVD thing is concerned, the finance guy is surely trying to upgrade the tech in india... but we know, upgrading to a new DVD drive doesn't make someone more tech savvy, as i think it will only increase the DVD piracy!

[navjotjsingh]

charging taxes on softwares and hardwares but left dvd drives?? Well people making such laws should have knowledge about PC also!

Also any idea of a scheme related to broadband situation in india?? It really needs a upliftment!

[Netjunkie]

In my opinion, the excise duty on software will not have much impact. Branded PC's too come with Linux preloaded on them, moreover the Opensource movement is really taking off at a good pace.

But the decision taken on Hardware is a bit surprising. Computers have just begun to reach the masses and such a decision at this stage will definetly affect their penetration in to the rural households.