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Rediff.com  » Business » Govt cuts duty on microprocessors

Govt cuts duty on microprocessors

Source: PTI
January 16, 2004 13:04 IST
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The government on Friday removed an anomaly in the recent excise duty cuts by bringing down the duty on microprocessors, other than motherboards, to zero from the current 16 per cent.

The excise duty has been brought down from 16 per cent to zero per cent on storage devices, including hard disk drive, floppy disk drives and CD-ROM drives, an official notification said.

In its mini-Budget on January 8, the government had cut excise duty to 8 per cent from 16 per cent and abolished 4 per cent special additional customs duty on computers, but this reduction was not extended to components and inputs.

To correct this anomaly, the government has now brought down excise duty on components following representations from the PC manufacturers, making domestic computers price-competitive.

"The central government is satisfied it is necessary in the public interest and hereby, makes further amendments in the notifications of January 8," an official statement said in New Delhi.

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