While the price rise for PC and notebooks will be in the range of 5-6 per cent ensuring that a Rs 30,000 PC will be sold for Rs 31,500, the imposition of the 8 per cent excise duty on packaged software sold over the counter is likely to increase piracy rates in the country.
'The introduction of the excise duty will increase the prices of PC and will dampen the growth rate in the industry. The increase in the prices of desktops will be about 4-5 per cent while the notebook prices will rise by 6 per cent,' said S Rajendran, General Manager (consumer product) Acer India.
The move is expected to give a major boost to the domestic manufacturers as till now the imported PCs were much cheaper than the domestically manufactured PCs.
'The 12 per cent excise duty will ensure the development of the indigenous manufacturers and boost local manufacturing. Earlier, computers were imported much more cheaper than those that were manufactured in the country, the duty will put the imported PCs on par with domestic PCs,' said
The issue of the 8 per cent excise duty on packaged software will be taken up by the Communications and IT Minister Dayanidhi Maran, as this is likely to further drive the piracy rates in the country. The piracy rates in India, according to a study by Nasscom is at 74 per cent.
'The industry has brought that (impact of 8 per cent duty on packaged software) to our notice... We will be representing the case to the finance minister and I am sure that the FM will accommodate this', Maran added.
The excise duty will also affect domestic software companies like Tally and TCS and Infosys who offer banking software sold over the counter.
'The 8 per cent excise duty on the shelf software products is a retrograde and will effect the prices of the products,' said Bharat Goenka, MD Tally Solutions.
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