Goa channel seek govt help

Goa, the tourism capital of India, is a growing IT market in the West. The
emergence of indu­stries, especially pharmaceutical companies, has given a
sign­ificant boost to the IT market there. But the global recession has hit the
Goa IT market as well. The channels feel that the demand for IT products has
taken a down swing recently as the corporate has stopped spending on IT
infrastructure. Even the retail segment is opting out from buying, as they want
to keep their money safe for a rainy day. Besides, the govern­ment's ambitious
Cyberage student scheme is also eating a lot of marketshare of the channel
community. Under the scheme students are being given desktops for a nominal
price.

Industry people believe that only government can bail out the local channel.
They want the government to start e-governance projects as it would create new
markets. Besides, they also want to see some changes in law. Prashant
Kuncolienkar of Computeronics Infotech complained that a 12.5 percent VAT is
imposed on multi function printers, as it is classified as non-IT product.
Whereas in nearby Maharashtra and Karnataka it is classified as an IT product
and draws a VAT of 4.5 percent. "Why should someone buy it from Goa, if it's
available at a cheaper price in a near by city?" he asked. Kuncolienkar also
informed that similar was the case with toners used for laser printers.