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Monday, April 26, 1999

High sales tax hits Bengal computer hardware business 

Suman Layak  
Calcutta, Apri 25: The computer hardware business in West Bengal is losing out to its counterparts in other states owing to its high sales tax regime, feel members of the Computer Association of Eastern India. "We have a sales tax of 5.75 per cent on computer hardware in West Bengal, which is not only the second highest in India but is way above the national average," the association's secretary B Hari said.

Delhi, Maharshtra, Orissa, and Andhra Pradesh charge 2 per cent sales tax on computer hardware, while Tamil Nadu charges 3 per cent and Karnataka 4.2 per cent. Only the local sales tax rate of Bihar on hardware is higher than West Bengal's rate. Hari said: "We drew the attention of the state finance minister last year and again this year, but somehow the minister seems to have overlooked our suggestion. We wrote a letter to him after the current year's state budget was presented and hope to meet him to persuade him to bring down the rate." Another member of the association said: "I do not think thegovvernment will bring down the rate. When we told them about it earlier this year they started a process to find out whether Andhra Pradesh has actually lowered its rates or not ."

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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