New Delhi, Feb 01, 2017 : In a move to push digital payments, the government today removed all duties on devices used in the process of cashless transactions like point of sales machines, finger print readers etc.
Finance Minister Arun Jaitley said in his budget speech, "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."
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.