Economy & Business  

Centre considering excise duty cuts:
computers may become cheaper

What is India News Service, June 30, 2004, 1700 hrs

Computers prices are expected to come down if the government brings down excise duty of peripherals. Maruti Udyog Ltd has launched a pilot project which enables customers to exchange their two-wheelers for a new car. The government is planning to ban the use of all vehicles, both personal and commercial, that are over 15 years old. Mobile handset sales have broken all records and touched a staggering 568 per cent growth.

Computer prices will drop if the government trims down excise duty on peripherals from 16 per cent to 8 per cent. The peripherals -- monitor, keyboard and mouse -- constitute 25 to 30 per cent of the price of an average PC. The slash in duty will make computers cheaper by 2 to 3 per cent. The business segment, the dominant buyer of PCs in India, accounted for around 75 per cent of the 3 million PCs sold last year.

Maruti Udyog Ltd, India\92s largest carmaker, has started a pilot project with select dealers offering customers a new Maruti car in exchange for their old two-wheelers. It is also in the process of establishing a company-owned vehicle exchange centre. This will allow prospective buyers to pick from a variety of models, both new and old. Company sources said that the Maruti board had cleared the proposal and was identifying land in Delhi for this centre.

The government is considering scrapping of all 15-year-old vehicles. In return it will offer excise breaks to encourage owners to buy fresh models. Under the scheme, which is currently being discussed, the centre could fix a maximum age on cars and trucks that will be allowed to ply on roads. Auto industry sources say this exercise is aimed at increasing manufacturing activity and job creation.

Breaking all records, GSM and CDMA mobile handsets have registered a whopping 568 per cent growth last year. The turnover registered was Rs 8,344 crore in 2003-04. In the overall handsets market, LG cornered a market share of 33.5 per cent. Its sales touched Rs 2,797 crore, against Nokia\92s estimated Rs 2,482 crore with a 29.7 per cent market share.

Overall:

Computer prices may come down: The government plans to trim down excise duty on peripherals from 16 to 8 per cent.

Two wheeler owners can upgrade: Maruti Udyog Ltd, India\92s largest carmaker, is offering customers new cars for old two-wheelers.

Aging vehicles may be junked:  The government is considering banning all 15-year-old vehicles, both personal and commercial.

Mobile handsets sold phenomenally: Breaking all records, GSM and CDMA mobiles registered a whopping 568 per cent growth last year.