Premium
This is an archive article published on December 1, 1998

Pentium, Celeron chips treated as microprocessors

NEW DELHI, NOV 30: The government will continue to treat Intel's Pentium II and Celeron chips as microprocessors thereby setting at rest ...

.

NEW DELHI, NOV 30: The government will continue to treat Intel8217;s Pentium II and Celeron chips as microprocessors thereby setting at rest the fears of a 5 per cent per cent price hike in computer prices.

The department of customs and central excise issued a notification on Friday according to which the two new generation chips will continue to be treated as microprocessors thus attracting 22 per cent duty as at present, rather than categorising them as populated printed circuit boards PCBs which attract 36 per cent duty.

The reports of the finance ministry having decided to treat the two chips as populated PCBs had sent the hardware industry into a tizzy as the two chips from Intel are used in almost 90 to 95 per cent of the system integrators in the country.

A flurry of activity that followed ensured that the ministry fell in line with the demands of the IT industry, said a industry source. The industry received support from the national IT task force members, department of electronics in exertingpressure the MoF, thus clinching the issue in its favour, said a company representative.

In a statement, the Manufacturers Association of Information Technology welcomed the decision to accede to its request to offer special duty concessions.

 

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement