>>>>> "Tarun" == Tarun Dua <[EMAIL PROTECTED]> writes:
Tarun> FM-speak on IT
Tarun> [snip]
Tarun> Positive impact
Tarun> [snip]
Tarun> * Pre-loaded software exempt from excise duty.[snip]
Tarun> My comments:-
Tarun> 1. Earlier the Bundled software component in PC hardware
Tarun> was subject to excise. 2. This has been given a tax
Tarun> exemption from excise. 3. That means to claim excise tax
Tarun> exemption the PC manufacturers will have to actually
Tarun> declare the value of the software to the Government for
Tarun> claiming exemption on excise. 4. The same valuation can be
Tarun> now used for claiming un-bundling of the software from the
Tarun> hardware or the OEM/PC manufacturer is forced to undervalue
Tarun> the software and pay a higher duty which they wouldn't do
Tarun> as it hurts their interests more to reduce his cost of
Tarun> . 5. We need to Draft a letter for the IT minister and
Tarun> CC'ed to Finance Minister "To make the OEM's --unbundle on
Tarun> request-- taking care that OEMs/PC Manufacturers do use the
Tarun> same valuation for bundled software while advertising and
Tarun> refunding the money to the end-user as they have used to
Tarun> claim the excise exemptions". Thus promoting consumer
Tarun> interests and preventing excise loss for the GOI
Tarun> . (Okaaayeh!!! --- I will try to re-draft the letter during
Tarun> weekend) Tarun Dua
I agree that when you look at it from the FM's perspective (and
presumably from yours) removing excise on bundled software is a way to
make the IT industry grow. Our two resident economic and policy
experts, Ghane and Ajit have also effectively spoken out against
increase in taxation.
My perspective is different: I do not believe that sheer growth in
quantity with no regard to qualitative factors is the way to long-term
health of the IT industry. By qualitative factors I refer to the use
of Free/Libre and Open Source Software in India. I personally believe
that the scope for growth and generation of more wealth is much higher
when FLOSS is more widely accepted, deployed and used.
There have also been arguments about what the fiscal or financial
policy of India SHOULD be. Yes, in an ideal world there should be a
move away from direct to indirect taxes (or vice versa, whatever the
gurus say :) . In that same ideal world decisions on software
purchase should only be made on merit without regard for any other
factors. Unfortunately I don't know anyone who lives in that world,
and I suspect that no one else on these lists does either.
Given that we live in an imperfect world, LinuxLingam's proposal to
introduce (re-introduce?) a tax on bundled or COTS software seems
eminently reasonable to me. It will not solve the world's problems.
It will not remove global hunger and bring all nations into an era of
unprecedented peace, fraternity and equality. It will not bring women
equal rights or end communalism. It may not even see the light of
day! What it can do it make help both vendors and users identify the
qualitative differences between the types of software they choose to
use or supply, and ensure that they are aware of alternatives and can
get them easily. Which alternative they choose, of course, remains
their own individual prerogative.
Regards,
-- Raju
--
Raj Mathur [EMAIL PROTECTED] http://kandalaya.org/
It is the mind that moves
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