IT sector seeks govt help against protectionist policies, tax incentives
The IT sector representatives, however, pointed out that they would need government’s help at policy level to combat visa restrictions issues so that their economic interests are ensured.
In pre-budget consultation meeting, the IT sector representatives sought access for easier fund for Telecom; Tax free Bond for Telecom; Lowering GST on Telecom services to 12% instead of 18%.
Stakeholders from IT (hardware & software) group on Monday sought the help from government against protectionist policies and tax incentives for growth of the sector during the pre-budget meeting with Finance Minister Arun Jaitley.
The Finance Minister said that to promote indigenous manufacturing of electronic goods, many steps have been taken by the present government in last three years including rationalization of the tariff structure with extension of differential excise duty dispensation on specified electronic equipments and withdrawal of duty exemption.
Jaitley said that in the Union Budget 2017-18, with the aim of creating an eco-system to make India a global hub for electronics manufacturing, the allocation for incentive schemes like M-SIPS and EDF has been exponentially increased to Rs 745 crores.
He was addressing the 6th pre-budget consultation meeting with stakeholders from IT group in New Delhi.
The IT sector representatives, however, pointed out that they would need government’s help at Policy level to combat visa restrictions issues so that their economic interests are ensured.
Similar to steps taken in previous budget to promote indigenous manufacturing of electronic goods, more steps to include rationalization of the tariff structure with extension of differential excise duty dispensation to mobile handsets/ tablet computers and other specified electronic equipment, should be taken for promoting broadband.
They also sought access for easier fund for Telecom; Tax free Bond for Telecom; Lowering GST on Telecom services to 12 per cent instead of 18 per cent; BCD on all non ITA-1 products; depreciation benefits for Make in India; promote components hub; keep electronics sector out of RCEP and increase import duty on Mobile handsets.
Besides the Finance Minister, others who attended the meet were MoS for Finance SP Shukla, Dr Hasmukh Adhia, Finance Secretary, AN Jha, Secretary, Expenditure, Subhash Chandra Garg, Secretary (Economic Affairs), Ajay Prakash Sawhney, Secretary, MEITY, Dr Arvind Subramanian, Chief Economic Adviser (CEA) and Sushil Kumar Chandra, Chairman, CBDT along with other senior officials of the Finance Ministry.