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Budget 2017: To promote e-payments, govt removes all taxes on PoS, other machines

India TV Business Desk New Delhi 02 Feb 2017, 10:32:27 AM IST
India TV Business Desk

In an attempt to promote cashless transactions as part of a campaign to encourage people to go digital, the government on Wednesday expelled all obligations on gadgets utilized as a part of the procedure of cashless exchanges like point of sales machines, finger print readers etc.

“To promote cashless transactions, I propose to exempt BCD (basic custom duties), excise duties, CVD (countervailing duties), SAD (special additional duty) on miniaturised card readers and mPOS micro atms standards for version 1.5.1, finger print readers, scanners and iris scanners," Finance minister Arun Jaitley said in his budget speech.

The minister also exempted components from taxes to encourage domestic manufacturing of these devices.

“Simultaneously, I propose to exempt parts... components for manufacturing of such device so as to encourage domestic manufacturing of these items," Jaitley said.

Elcina Electronic Industries Association of India said the exemption should be only for short-period to meet immediate needs to address shortages of such machines. In the long-term can, exemption to such machines can be detrimental for local manufacturing.

“It is a good move to encourage digital transactions. However, it should be given to meet immediate needs. Long term exemption can lead to dumping of these machines from foreign markets. It should not be extended for full fiscal year," ELCINA Secretary Rajoo Goel said.

(With inputs from PTI)