Budget 08: Datacards to Get Cheaper
Deepak Ajwani, Feb 29, 2008 1600 hrs IST
If you thought computers and much of the hardware components that go into them would become cheaper - well not for the next financial year atleast.
This year's budget speech announced today morning by India's finance minister, Palaniappan Chidambaram, has given away barely any sops to the technology consumers of the nation.
If you thought computers and much of the hardware components that go into them would become cheaper -- well not for the next financial year atleast. Nope -- there are no excise duty cuts for computer manufacturers, no excise duty cuts in import of computer parts and peripherals. But there is some cheer for those who are on the move and usually access the Internet via datacards.
Yes, if you plan to log on to the net through a wireless datacard -- well that will turn cheaper for sure from 1 April 2008. For, the finance minister has reduced the excise duty on wireless datacards from 16 percent to nil. You read right -- absolutely zero! And as per our talks with leading telecom operators who sell these datacards, this benefit will be passed on to consumers straightaway. So expect the Bollywood actress Kajol to push a little more for her preferred brand of datacards in her new advertisements.
The other area that the finance minister's speech focused on, and falls in the realm of informaton and technology is the increased grant of Rs 180 crores to the Department of Information Technology, and allocation of funds to set up Broadband-enabled service centers in rural areas. He announced an allocation of Rs 1,680 crore (from an earlier 1,500 crore) to the Department of Information Technology in 2008-09 while allocated funds to set up 100,000 Broadband Internet-enabled Common Service Centers in rural areas, State Wide Area Networks (SWAN), and for a new scheme for State Data Centers. Rs 75 crores wil be provided in the next financial year to the common service centers; Rs 450 crores have been allocated to SWAN, while Rs 275 crores have been granted for the State Data Centres.
Zero customs duty on Set-Top boxes
The finance minister also announced that specified parts of set-top boxes and specified raw materials for use in the IT/electronics hardware industry would be exempt from customs duty. This could mean a drop in prices of set-top boxes as well as TV, DVD players, etc. We are yet to get details on this yet, but will keep you posted on this in our next update. Add to it, he announced customs duty on convergence products to be reduced from 10 percent to 5 percent.
Original Software is now Expensive
Although the dampener came on the packaged software front. The finance minister has announced an increase in the excise duty on packaged software from 8 percent to 12 percent -- this he says is an attempt to bring it on par with customised software that will attract a service tax of 12 percent in the new financial year. So expect the new orignal software to be dearer by four percent. Though with rampant piracy in India, and a handful few paying up for an original piece of sotware, does the majority of Indian consumers care?
This move in a way will act as a deterrant to the anti-piracy campaigns being run by Microsoft and leading software makers. And, the increase in cost of original software will also affect the IT budgets of coporates who usually buy genuine software products.
USER COMMENTS
With more and more increased users of mobile phones and computers, cost should be used. Or else piracy will be increased, if original software is made expensive.
by Prashant, Hyderabad, on Mar 03, 2008 03:23 PM, Report abuse Reply
The new budget is very good 4 farmers and all lower/middle cls ppl but 4 students and computer lovers..It's like d warning line written on cig. packets.."cig. smokin is injurious to health"(but still cig. is available everywhere;;).The new budget means u only pay 4 the hardware,and 4 the software part......rely on road side thelawala....jay ho india..
by Dhrupad sarma, Guwahati, on Mar 03, 2008 12:07 PM, Report abuse Reply
Loan waiver of Rs. 100,000 Crores to farmers will prove to be a very costly blunder. Congress has done it to gain poll advantage, and proposed it knowing fully well that no political party will have guts to oppose some thing so populist in nature. However, on the grassroots, this move will backfire and create intense jalousies because, those farmers who had being paying their loans honestly, will feel like big fools. The move will also set precedence for similar populist moves from other quarters. It is certainly not my point that the poor debt ridden farmers should not have been helped. Government could have extended the durations of loans or even given repayment holidays in stead, or be more selective. But to write off all such loans across the board is simply absurd. I am surprised that loans taken as late as by the end of 2007 were waived. What for? These farmers did not even get a chance to repay the loans. Government has taken undue liberty with public money for political gains and in process destroyed the sanctity of the whole process of loans, for which they must be severely punished in the next elections. PC Chidamabram has proved to be as spineless as other congress ministers are.
by Paul Nagrani, Mumbai, on Mar 03, 2008 03:05 PM, Report abuse
by SRINU, hyd, on Mar 02, 2008 08:49 AM, Report abuse Reply
kya pirated software bhi 4% mehenge ho jaayega?? 30 ki bajaye 31.2 ki CD... badi mehangai ho jaayegi.. chalo koi na.
by Paploo Pirates, Palika Basement, on Mar 01, 2008 11:39 PM, Report abuse Reply
Piracy will kill the Software manufacturers. You can find many road side thela walas selling pirated CD/DVD's of all the software you need, on every station in Western suburbs of Mumbai. Price Increase by 4% effects whome?
by Dams, Mumbai, on Mar 01, 2008 06:57 PM, Report abuse Reply
Just another boost to software piracy!
by Dylan, Vasco, on Mar 01, 2008 06:08 PM, Report abuse Reply
by rajat, cal, on Mar 01, 2008 07:38 AM, Report abuse Reply
by ajman, cal, on Mar 01, 2008 05:00 AM, Report abuse Reply
by nirab, maum, on Mar 01, 2008 05:01 AM, Report abuse
by waizkarim, Delhi, on Mar 01, 2008 03:06 AM, Report abuse Reply
by rakesh, individual, on Mar 01, 2008 02:03 AM, Report abuse Reply
by amit, individual, on Mar 01, 2008 01:58 AM, Report abuse Reply
by rajbirt, mumbai, on Mar 01, 2008 01:51 AM, Report abuse Reply
FM has become like a galli politician.. Nothing concrete to build countrys infrastructure.
by suresh, hyd, on Feb 29, 2008 09:26 PM, Report abuse Reply
it's good,and the bad news also
by soso, hyderabad, on Feb 29, 2008 07:20 PM, Report abuse Reply
On the overall it is a lousy budget.
by Sanjay, Mumbai, on Feb 29, 2008 05:37 PM, Report abuse Reply
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Will PC support only Microsoft & Tally(Reliance group49%share) to grow, and other individual who develope s/w will stop and tied up thier hands.
by Suthakaran, Coimbatore, on Mar 05, 2008 06:36 AM, Report abuse Reply