Michael Dell wants Indian government to lower taxes on computers
Hardware Manufacturers, Personalities, Taxes and Taxation March 20th, 2007
Michael Dell wants Indian government to lower taxes on computers
India is a growing market for major computer manufacturers in the world. Dell is one of the bigger players in the market to have done well in the country.
However, Dell’s Chairman and Chief Executive Michael Dell has said that higher taxes implemented on computers in the region is hindering their plans to expand and further explore investments in the region.
Dell has managed to perform well in selling servers and corporate computers. However, they trail other players in the notebook segment which is growing at a phenomenal rate in India.
Their market share in India is just around 5% and they are still trailing other global players like HP and Lenovo in the region. Dell said that India is one of the few nations worldwide to apply both import tariffs and sales taxes on computers. This enhances the cost of the products by around 20-25%.
Dell added: “We want customers who are loyal; we want to be profitable. When we do all those things, eventually we become No. 1.”
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About
Michael is requesting about two taxes. First import tariff; this is just to protect domestic industries, Dell can very well start production in India and sort out the issue. Second levy is sales tax; this is a nominal rate apply to everyone. If customers can pay sales tax on everything they can pay on computers also. Levy of sales tax should be reduced to the minimum so that more and more can affort to buy computers.