CRN Network, March 09, 2010, 1130 hrs
CMDA Pune is set to go on a strike if the Pune Municipal Corporation (PMC) doesn’t rollback the announced hike in Octroi levy on IT products.
Last month, the PMC announced an increase in the Octroi levy from earlier 3 percent to 4 percent from April 2010. Also, Octroi exemption on purchases of IT products by sectors like defense, education, and government has been removed.
“It is a retrograde decision to increase Octroi. At a time when all states have abolished Octroi, this decision by the PMC is unfortunate and will affect the IT industry in the city drastically,” said Shashikant Satbhai, Vice President, CMDA.
CMDA has called for an EGM (extraordinary general meeting) of its 375 members on March 19, 2010 to discuss and decide their future action on the Octroi hike.
“We have written letters to the authorities explaining how the Octroi hike will impact the IT business in the city and will affect Pune’s standing as a preferred IT destination for software companies,” said Satbhai. “We are hopeful that the government will see our logic and roll back the hike. In case they don’t, we will be compelled to go on an indefinite strike that will result in total closure of IT services in Pune.”
CMDA has struggled a lot to make companies like HP, Lenovo, LG, Samsung, Sony and Canon deliver Octroi paid material, which has in turn increased the Octroi collection of the PMC. “Increasing Octroi means again there will be inflow of material from other cities, which will hamper computer business in Pune,” added Satbhai. |