IT products to get costlier

Mumbai

February 11th, 2008

IT equipments in the country will now become dearer. There will be a hike in
the price of all IT-products with the Central Board of Excise and Customs
implementing MRP-based excise from January 25. A hike of four to seven percent
is expected on imported goods and a hike of three to five percent will be seen
on domestic IT-products.

Talking about the hike, Umang Mehta, MD, Roop Technologies said, "We
want the abatement to be increased from 25 to 40 percent so that we will get
more rebate on MRP and the excise will be less. We will also take all the help
from Traders Association of Information Technology (TAIT) which will lobby if
required with association like Manufacturers Association of Information
Technology (MAIT) to get increase the amount of rebate."

Another major importer, Sandeep Parasrampuria, Director, Best IT World and
owner of the brand i-Ball said, "Keyboards and mice will now become more
costly with this decision by the Central Government. All products that are
directly purchased by customers will be costlier. Earlier the system was to
charge excise duty on the purchase price. But now with the decision to charge
excise on MRP products will get costlier."

Zainul Tinwala, owner of the brand Zen and Director of HT Impex said,
"With the application of excise on MRP and the abatement not going down and
increase in other taxes, it will become most difficult for us to import goods
from various countries as the excise will be a major part of it. The rebate
given by the excise commission is just 25 percent and we want the government to
increase the rebate."

Giving the issue a different angle, Mehta said, "These products will now
become cheaper for customers as dealers will not sell products at unfair prices
since they will have to pay excise on the price quoted."