CDFG demands dignified survival of IT hardware professionals in Goa

CDFG slammed the ‘Cyber Age’ scheme, called it an Eye Wash, demanded VAT on Online Sales

Aggrieved by government’s alleged failure to curb online menace, Computer Dealers Forum of Goa (CDFG) has said that if the scenario continued, thousand of hardware professionals would be forced to shut down their business. CDFG also slammed free distribution of laptops to students under the ‘Cyber Age’ scheme and said that it has severely affected the business of common computer dealers.

Demanding dignified survival IT hardware professionals in the state, CDFG have demanded VAT on online sales and entry tax on goods. The forum pointed out that the state government was losing 500 to 700 crore tax revenue every year by giving a free hand to online giants.

Caption: Mandar ManjarekarMandar Manjrekar, member of CDFG said, “We as a responsible businessmen comply all formalities of taxation. However, there is no control on online sales by tax and revenue department. Such scenario is unjustified and it is not viable to do business in such conditions. If this trend continues, I will be forced to shut down my business in the next six months.”

CDFG said that there were around 350 registered dealers in Goa who employ 1500-2000 people. The forum said government’s apathy towards offline dealers would axe their jobs in near future. The forum said, taking advantage of state’s tax policies certain brands have created dummy warehouses in Goa and they show CST billing from the state.

The forum also alleged that the ruling government was intended to bring FDI in retail and centre was putting pressure on the state government to go slow on the online retail. The forum also alleged that some politicians were pressurizing the Commercial Tax Department not to take against E Tailors.

The forum said despite of several representations to the Commercial Tax Department, there was no change in the situation.

The DQ Week approached Shyam Korgaonkar, Director, Commercial Taxes to seek his stand over the entire controversy. When contacted Korgaonkar said, “We have amended Entry Tax Bill last year and now formalizing the rules and soon it will come into force. With proper rules and regulations, we will be able to investigate incidences of tax evasions in online transactions.”

However, he declined to give additional information of taxation on online trade.

Former Goa CM Manohar Parrikar distributing laptops to student (File Photo)CDFG also slammed the ‘Cyber Age’ scheme terming it an eye wash. He said that the scheme was made to benefit some handful suppliers and fill the pockets of government officials and politicians engaged in the scheme.

“I do not understand the logic behind giving free laptops to Class XI and XII students when they are about to complete their higher secondary studies. We doubt whether the scheme actually serving its purpose. There are incidents where instead of using these free laptops for study purpose, students use it to access pornographic stuff and downloading music,” he said.

The “Cyber Age’ scheme is an ambitious project launched by former chief minister Manohar Parrikar which aimed at providing cheap and ready to use personal computers to higher secondary students followed by laptops for college students and now tablets for secondary school students. Since, its launch the scheme facing allegations like sizeable fraud, favourism and lack of transparency.

Describing the scheme as “Cyber Age Dhukhi Sena”, Manjrekar pointed out that only 4 to 5 suppliers supply 14000-15000 laptops in the state. He alleged that some people were indulged in crimes like blackmailing to get the government tenders.

“The Cyber Age scheme is complete eyewash and has made to provide privilege to handful suppliers and concerned government officials. Instead of giving free laptops, the government should work to create high-tech classrooms. We demand an investigation of turnover of Cyber Age suppliers”, he said.

Manjrekar said that the education department was planning to distribute 8000-10000 laptops this year. Instead of it should give soft loans to students.

“We are already working on thin margins and if the government starts giving free laptops, how we will sustain in the business. Goa is not a backward looking state. Therefore, the government should immediately stop giving everything for free”, he said.

CDFG has vowed to take up their grievances with the aggressively The forum has demanded an emergency meeting with CM Laxmikant Parsekar and urged local MLA to raise voice in the assembly to safeguard the interest of thousands of dealers in Goa.