'More sops for IT hardware sector'

NEW DELHI, AUG. 18. The Union Finance Minister, Mr. Yashwant Sinha, today assured the information technology (hardware) sector of tax sops and simplification of export-import procedures to promote the sector amid economic slowdown.

``There are some issues relating to taxation which we shall consider and provide relief either immediately or in the next budget,'' Mr. Sinha told reporters after a meeting with the IT Minister, Mr. Pramod Mahajan, and industry representatives here.

Mr. Sinha said the Centre had already announced some customs and excise relief in the last budget and pending issues would be considered after consultation with the respective Ministries.

E-governance was another issue that came up during the meeting, Mr. Sinha said, adding the Government would soon set up a mechanism to monitor the three per cent expenditure by individual Ministries in IT initiatives. Issues related to Information Technology Agreement (ITA) under the WTO obligations, were also taken up by the two Ministries, although Mr. Sinha declined to elaborate.

Some of the spot decisions taken today included simplification of export-import procedures to enable the industry to operate in a more congenial atmosphere, he said, adding the Government had decided to offer 24-hour facility in customs procedures for hardware importers to reduce the time lag.

The facility would be available in three sea ports (Chennai, Mumbai and Kolkata), and in four airports (Bangalore, Hyderabad, Delhi and Goa).

Mr. Sinha said the customs in these specified places would work in two shifts on normal working days and in one shift on holidays. ``The overall objective of this exercise was to promote the growth and development of the hardware industry,'' he said.

Asked about taxation of e-commerce, Mr. Sinha said, ``it is a much more complex issue. We did not discuss it.''

During the meeting, the Wipro chairman, Mr. Azim Premji, dwelt on the issues and problems impeding the industry's growth.

The Nasscom chairman, Mr. Phiroz Vandrevala, said the Finance Minister had taken stock of the demands of the industry. He, however, declined to elaborate.

The meeting was also attended by Central Board of Excise and Customs (CBEC) chairman, Mr. Sukumar Sankar, and Manufacturers' Association for Information Technology (MAIT) representatives.

- PTI

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