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The Government has announced certain indirect & direct tax cuts in the mini budget announced on 8th January 2004.


For computer hardware, a cut in Excise duty from 16% to 8% and across the board removal of the 4% Special Additional Duty (SAD) by the Ministry of Finance is a step further in the direction of making India a global IT power. It is heartening to see that the Government has taken note of the industry’s pleas and we are hopeful the measures will help the Indian IT industry achieve its potential and emerge as a competitive player in the international scenario.


In a country like ours, the price point of a product is a critical factor. The cut in excise duty and SAD will bring down the price of PCs in the country, making it more affordable to the ever-growing middle class, leading to a higher PC penetration. In addition, the price reduction by the organized sector will help combat the grey market. The consumer prefers a branded PC, which comes with the assurance of quality and long term customer service.


HCL Infosystems, as usual, has been first to pass on the benefit of duty reduction to it’s consumers by an appropriate reduction in PC prices.


For Mobile handsets, the Government has also announced reduction in custom duty from 10% to 5%. Moreover the Special additional duty @ 4% has also been withdrawn. The reduction in customs duty on Mobile phones will help in further improving penetration in the country. Nokia & HCL Infosystems have announced new prices for mobile handsets.


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