The government has announced excise duty exemptions till March 31, 2017
To promote digital payments, the upcoming budget may offer incentives to companies which manufacture equipment like PoS machines and micro ATMs.
According to sources, the government may cut or eliminate excise duty on manufacturing of micro ATMs, finger print readers, biometric cards and PIN cards.
Further, import duty may also be reduced on components used in the manufacturing of micro ATMs, they said, adding the excise duty exemption given by the government on these machines may be further extended.
The government has announced excise duty exemptions till March 31, 2017.
The ‘Committee on Digital Payments’, headed by former finance secretary Ratan P Watal, had suggested incentives to encourage digital payments in India.
It had suggested withdrawal of all charges levied by government departments and utilities on digital payments and bear the cost of such transactions and mandate government departments and agencies to provide option to consumers to pay digitally.
Currently India is dependent heavily on import of these items. Read more