Budget 2017: Tax sops for domestic manufacturers of PoS machines, micro ATMs on the anvil

In a bid to make Indians adopt cashless transactions, it is believed in the upcoming Union Budget 2017, the government will offer incentives to companies which manufacture equipment like PoS machines and micro ATMs.

As per several reports, the government is looking forward to reduce excise duty on manufacturing of micro ATMs, finger print readers, biometric cards and PIN cards. Also, import duty might also be reduced on components used in the manufacturing of micro ATMs and excise duty exemption given by the government on these machines may be further extended. Currently, 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. The committee has 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.