CyberTech Rambler

June 1, 2010

Hardware without Software is not tax-deductable

Filed under: Uncategorized — ctrambler @ 11:23 am

The news on the web is that Czech Ministry of Finance is proposing that if you buy computer without software, then your purchase cost is not tax-deductable.

The author says this step is obviously urged on by Business Software Alliance to push for pay-for software. Me? I am wondering whether the ministry is looking at trying to boast tax-revenue in the recession.

We know this is yet another misguided attempt to reduce piracy, if this is the ultimate aim. Moreover, finance ministry has nothing to do with piracy, as that is the domain of the department dealing with commerce. It should not had dipped its toe in.

There is a possible silver-lining: To get around it, one simply has to install Linux on the hardware. Knowing that the ministry would be quite vigilant on preventing fraud, we can expect that there is no ‘mickey mouse’ job, i.e., partial installation that don’t work. This will be a boast for Linux as it makes people aware of alternatives available. As for piracy? People will always run pirated software. No amount of tax penalty will change this. That will only encourage people to find ways to circumvent it.

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