Amid upror over the ongoing demonetisation issue and to promote card payments, the Central government has slashed levies on Point of Sale (PoS) machines whose demand has increasingly increased by merchants post demonetisation of high value currency.
The Government has now made them cheaper by about 16.5 per cent.
“PoS machines will be exempted from 12.5 per cent excise duty and 4 per cent SAD (Special Additional Duty) till March 31, 2017,” said PTI quoting a source.
According to the PTI REPORT: A notification to this effect was tabled by Finance Minister Arun Jaitley in the Lok Sabha recently.
The notification “exempts Central Excise/CV duty on all goods for manufacture of PoS devices subject to actual user condition, and these exemptions will be valid till March 31, 2017”.
As per PTI sources, about 90 per cent of such machines are imported, adding that “as imports of such items are zero per cent and hence basic customs duty (BCD) and countervailing duty (CVD) are also zero per cent.”
The PoS machines are handheld devices which are being increasingly used by merchants to accept payments for goods sold through credit and debit cards.