The Channel logo


By | Austin Modine 20th March 2007 22:48

Michael Dell slams India's PC taxes

Sez tariffs prevent expansion

Dell Computers wants to expand its PC market in India, but insists that the country's high tariffs on PCs must go.

Chairman and CEO Michael Dell met Indian Prime Minister Manmohan Singh and other top officials while at the Confederation of Indian Industry's CEO forum in hopes to push the government to see it his way.

Dell claims the additional cost prevents the company from expanding and further investing in India. Many countries have no or relatively low taxes on computers, but India's tariffs and sales takes make up 20 to 25 per cent of the cost of a computer, said Dell.

Dell's Indian market share is at five per cent, trailing behind HP, Lenovo and local giant Hindustan Computers, which have had a presence in India longer and offer lower prices.

Dell's inability to compete with their price tags results at least partly from the company shipping fully-assembled systems into India. Paying more in duties than its rivals' locally manufactured boxes makes Dell boxes a harder sell.

Dell hopes to overcome this obstacle when it opens a new plant in a special economic zone near Chennai in southern India. However, while taxes aren't levied on exports in the zone, domestic market products face the normal excises. This will still place Dell at a disadvantage from competitors in the, which placed plants in more local tax-friendly locations.

Dell is investing $30m in the facility, which should turn out 400,000 systems per year, kicking off in July. ®

alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


Suit-and-tie-wearing man tries to meditate, take deep breaths in faux yoga pose. Photo by Shutterstock
Emotional intelligence, not tech skills, is the way to woo suits
League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe