The imposition of 15 percent General Sales Tax (GST) on computer hardware would directly hit users and businesses from all segments across the country. The withdrawal of Customs Duty on the import of computer hardware could not be considered as tax relief.
Ultimately that would greatly affect the information technology sector and its growth. In the post-budget scenario of the Federal Budget, the experts believe that the IT sector would be adversely affected by the decision, as it would not only impede the growth of the IT sector and its allied services but would have even a worst impact on the entire adoption of the country''s Information Communication Technology (ICT) and on its employment.
Experts said, "It is only now that our industrial sector has recognised the importance of integrating IT into their business processes. Now, this is the right time to realise that ICT is a high potential and worthy of investment sector. Foreign investors have now begun to show some interest and this is absolutely the wrong time to take back incentives that are seen to be progressive and visionary".
They maintained that the end users would be the worst hit, as the decision would drag the prices of hardware and software up at a time when the mass computerisation is direly needed. The planned up-gradation and the proposed development schemes in this regard would also suffer a setback and most of the projects are likely to come to a halt.
They regretted that the concerned circles who are the ultimate beneficiaries rather sufferers are never consulted pertaining to such unfavourable and sudden decisions.
Educational institutions, hospitals, financial institutions, Small & Medium Enterprises (SMEs) all would have to pay the price. The government''s e-governance programs would be affected adversely as cost of implementation would no doubt be multiplied.
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