Due to several reasons profitability of the resellers is decreasing everywhere in the country, however in particular, channel partners in Maharashtra are facing a more difficult time as in spite of several assurances from the state government, octroi is still in its place.
In September 2007, in a meeting with the industry leaders on the event of Indian Merchants’ Chamber (IMC) Centenary celebrations, chief minister Vilasrao Deshmukh assured, “We are committed to abolishing octroi. We are trying to find out some solution and alternate method to abolish octroi.” Wherein he did not give any time commitment.
Even today, more or less after three months, however, there is no much that has been done in this direction. Contextually, it may be noted that Maharashtra is the only state in the country, which is still to declare a concrete plan to abolish Octroi within a target date.
Abolition of Octroi is not only important for uplifting the channel business, but also that will bring parity in price of the IT products in all parts of the state, which will accelerate the pace of technology absorption in all parts of the state. This is also very urgent considering the implementation of the Goods and Services Tax (GST) regime in the country by 2010 – the proposal of the union finance minister P Chidambaram. State government has to do the needful at the earliest, otherwise this will create a situation of system-led-malpractices.